Is Ownership in the Future for Stuy Town Residents?
Wall Street Journal reports: The tenants at the 11,000-unit complex known as Stuyvesant Town and Peter Cooper Village — which was bought for $5.4 billion before collapsing to an estimated value of less than $2 billion — all want something different as they navigate out of what's known as the largest failed residential real estate deal of all time.
The talks between tenant representatives and CW Capital, the company representing the senior investors, are still at an early stage, says City Councilman Dan Garodnick, a longtime resident who represents the complex and says he's been involved in the talks. Both sides are interested in developing an affordable option allowing tenants to buy in, he said.
In order for any deal to work, a sizable number of tenants would likely have to agree to buy in, says Ben Thypin, a senior market analyst at global commercial property research firm Real Capital Analytics.
The conversion is in the investors' interests because "the tenants are in the position where they would probably value the property at the highest price," Thypin said. Investors "might not lose as much as we thought they would a year ago — but they're certainly not going to make the money back," he said.
CW Capital, which struck a deal with other investors last month that allowed it to take full control of the property while avoiding tens of millions of dollars in transfer taxes, did not return a call seeking comment.
View the full article on Wall Street Journal: Is Ownership in the Future for Stuy Town Residents?
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Posted by: Nina Turner