The Real Deal New York

Fannie and Freddie: We’ll consult city, tenants on Stuy Town

Mortgage agencies promise to meet with stakeholders before investing in any future transaction

June 12, 2014 12:38PM

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From left: Jeffrey Hayward, Stuyvesant Town (source: Alec Jordan), Daniel Garodnick and Gale Brewer

From left: Jeffrey Hayward, Stuyvesant Town (source: Alec Jordan), Daniel Garodnick and Gale Brewer

Mortgage giants Fannie Mae and Freddie Mac promised the city and tenant groups they will not invest in any deal to purchase Stuyvesant Town and Peter Cooper Village without first consulting lawmakers and residents. The mortgage agencies made the assurances after lawmakers sent a letter urging the lenders to reject any deal that would threaten affordable housing at the developments. Fannie Mae is not currently seeking a piece of a Stuy Town deal, but agreed to meet with city stakeholders if it were asked to participate in a future transaction, Jeffrey Hayward, senior vice president at Fannie Mae, told the Wall Street Journal.

Lawmakers including City Council member Daniel Garodnick, Representative Carolyn Maloney and Manhattan Borough President Gale Brewer sent the letter. The politicians hope to bolster their efforts to preserve affordable housing at Stuyvesant Town by securing agreements with Fannie, Freddie, the Housing and Urban Development Department and the Federal Housing Finance Agency, reports the Journal.

Senior bond holders represented by CWCapital Asset Management own Stuyvesant Town, as well as Peter Cooper Village, which were valued at $4.4 billion in a recent deed transfer. Bloomberg News reported that Fortis Investment Group, which owns CWCapital, is readying a $4.7 billion offer for Stuyvesant Town in May. [WSJ]Tom DiChristopher

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