The owners of Stuyvesant Town and Peter Cooper Village — Manhattan’s largest apartment complex — are one step closer to unloading the financially troubled property, following an appraisal valuing the complex at $3.2 billion — $400 million more than in 2010, according to the New York Post. The appraisal was conducted by an independent appraiser for CWCapital Asset Management, which controls the rental property on behalf of the bondholder owners.
When bondholders took over the 11,000-unit property from Tishman Speyer in 2010, it was heavily distressed, valued at $2.8 billion — less than the $3 billion first mortgage. Tishman paid a record $5.4 billion for the complex in 2007.
The property’s bondholders need to sell for at least $3.4 billion to break even, sources told the Post. But the $3.2 billion appraisal makes it far more likely that a sale would be approved. Tenants have been pushing for a speedy sale of the complex, but CWCapital has so far refused to entertain offers. The Tenants Association has since tried to oust CWCapital and work with Toronto-based Brookfield Asset Management to convert the rental apartments into condominiums.
“Now the property will start to get interesting again,” Steve Kuritz, who analyzes mortgage-backed securities for Morningstar Credit Ratings, said.
In late November, Stuy-Town tenants reached a $146.9 million settlement in a long-running class-action lawsuit against the properties’ owners. However, CW Capital has said that the settlement could actually mean a rent hike for tenants. [NYP] —Christopher Cameron