JPMorgan has some advice for Stuy-Town investors

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
After authorities vowed review of Stuy Town deal, Blackstone changes course on vacancies
Photo illustration of Brookfield Property Partners’ Brian Kingston (Brookfield, iStock)
Struggling hotel company handing Brookfield the keys
Struggling hotel company handing Brookfield the keys
Brookfield Real Estate CEO Brian Kingston and Brookfield Asset Management Bruce Flatt (Brookfield)
Brookfield taking pandemic-hit real estate arm private
Brookfield taking pandemic-hit real estate arm private
David Wolkoff of G&M Realty. (Getty, 5Pointz LIC)
Wolkoff family firm snags $350M loan for 5Pointz
Wolkoff family firm snags $350M loan for 5Pointz
The “flexible hybrid model” is set to debut in July in North America (iStock)
Et tu, Ford? Automaker lets 30K workers stay home post-pandemic
Et tu, Ford? Automaker lets 30K workers stay home post-pandemic
(iStock/Illustration by Kevin Rebong for The Real Deal)
Office landlords offer amenities to reel in employees
Office landlords offer amenities to reel in employees
421-427 East 14th Street (Google Maps, iStock)
Stuy Town to get new 17K sf grocery store
Stuy Town to get new 17K sf grocery store
From left: Fifth Wall’s Brendan Wallace, Tishman Speyer’s Rob Speyer, Social Capital’s Chamath Palihapitiya, Cantor Fitzgerald’s Howard Lutnick, Pershing Square Capital’s Bill Ackman and Opendoor’s Eric Wu
Making sense of the SPACe race
Making sense of the SPACe race
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...