JPMorgan has some advice for Stuy-Town investors

TRD New York /
Jun.June 20, 2012 02:00 PM

A new study shows that the of sale of Stuyvesant Town/Peter Cooper Village to the partnership entity between tenants and Brookfield Asset Management would likely offer holders of the property’s first mortgage the best returns. The study, first reported by Crain’s, was undertaken by JPMorgan Securities. The report also found that selling the 11,000-unit rent-regulated complex, which has been in foreclosure since 2010, to the partnership was the development’s most likely outcome.

In late 2011, the partnership said it wanted to purchase Stuyvesant Town/Peter Cooper Village for conversion into affordable condominiums. The JPMorgan Securities study reports a 2011 appraisal of the complex valued the property at $3 billion, and that a partial conversion to condos would bring in $4.4 billion. According to the report, the conversion “could in principle result in a purchase price significantly in excess of the first mortgage balance.”

As previously reported, Stuyvesant Town/Peter Cooper Village’s current $3 billion delinquency accounts for 4 percent of the multi-family sector’s current 15.2 percent delinquent loan rate. [Crain’s] 


Related Articles

arrow_forward_ios
Blackstone CEO Steven Schwartzman and Stuyvesant Town (Credit: Getty Images)

After authorities vowed review of Stuy Town deal, Blackstone changes course on vacancies

From left: Brookfield's Ric Clark, 3333 Broadway and L+M's Ron Moelis (Credit: Brookfield, L+M, StreetEasy)

L+M, Invesco close on Putnam portfolio with $823M in Wells Fargo financing

50 Rockefeller Plaza and Katten's Chris DiAngelo (Credit: Google and Katten)

Katten law firm moving to Rockefeller Center

The Daily Digest - Tuesday

WeWork bonds hit low, new LLC legislation went farther than intended: Daily digest

From left: Jonathan Gray and Steve Schwarzman with Stuyvesant Town

Behind Blackstone’s “capital strike”

Clockwise from the top left: Jackson Park at 28-40 Jackson Avenue, 240 Willoughby Street in Fort Greene, 664 Pacific Street in Brooklyn, and 247 Metropolitan Avenue in Williamsburg (Credit: StreetEasy, Google Maps, Pacific Park Brooklyn, The Pod Hotel)

These were the top 10 outer-borough loans last month

October Issue is Live

The Real Deal‘s October issue is now available to subscribers!

Jackson Park at 28-40 Jackson Avenue and Tishman Speyer's Rob Speyer (Credit: StreetEasy and Tishman Speyer)

Tishman Speyer locks in $1B in financing for Jackson Park

arrow_forward_ios