CW Capital Asset Management is preparing to sell Stuyvesant Town-Peter Cooper Village. The loan servicer, which controls Stuyvesant Town on behalf of bondholders, has tapped Eastdil Secured’s Doug Harmon to advise them on the sale of the 80-acre property.
Five years after Tishman Speyer and BlackRock defaulted on the property during the financial crisis, the property could see even more than the record $5.4 billion it last sold for in 2006. Eastdil Secured estimates that it could fetch between $5 billion and $6 billion, a person with knowledge of the deal told Bloomberg.
Other Bloomberg sources added that Blackstone Group is among the companies considering buying the property.
“That’s a lot of rental housing in an area that just keeps getting better,” Joshua Stein, principal of the eponymous real estate law firm, told Bloomberg. “It’s a very special asset. I would not be surprised if the value has now exceeded the value [of the 2006 deal].”
But of course, any deal is likely to be fought by locals, politicians and affordable housing advocates.
“The tenants are going to insist that the owners work directly with them and with the city to develop a responsible plan to protect the long-term affordability of the place,” City Councilman Dan Garodnick, a lifelong resident of Stuyvesant Town-Peter Cooper Village, told Bloomberg. “The ownership has changed more times in the last handful of years than it had since its creation and tenants want to see this issue resolved for good.” [Bloomberg] – Christopher Cameron