The Real Deal New York

Stuy-Town owners push to raise income before potential sale

April 22, 2013 09:30AM

Now that the legal fracas over Stuyvesant Town and Peter Cooper Village has finally been resolved, its owners are looking to boost income at the mammoth housing complex before putting it on the market, the Wall Street Journal reported. 

Several real estate experts speculated CWCapital Asset Management would begin marketing the 11,200-apartment complex shortly after the case was settled earlier this year. But those familiar with the deal told the Journal that CWCapital will wait until the property brings in additional money. Appraisers currently value Stuyvesant Town at $3.25 billion to $4 billion.

CWCapital gained control of the East Side complex in 2010, after Tishman Speyer Properties and its partners handed the property over to creditors.

Earlier this month, CWCapital agreed  to pay out $69 million in a class-action lawsuit over rental rates on luxury units. For a long time, the pending lawsuit had deterred sales. Now, CWCapital believes that it can raise rents on those units and secure a higher sales price in the future.

Any effort to sell the complex would likely evoke a strong community response and give new rise to the affordable housing debate, given its large concentration of rent-regulated apartments. CWCapital has previously stated it would like to sell the property on the open market to the highest bidder, a move that would push up rents further. But the complex’s 22,000-plus tenants have political clout and won’t stand down so easily, according to the Journal.

“I don’t see a fast, simple or short resolution or disposition of the asset,” Michael Ashner, chief executive of landlord Winthrop Realty Trust, which tried to take control of the property in 2010, told the Journal. [WSJ]Hiten Samtani

  • cobblehillite

    the way to preserve affordability at stuy town is to means test all families. Those who are paying more than 30% of their income on rent or are below a certain AMI level get protection against future large increases. Those families above a certain level — 200% AMI (this is all negotiable) go market. the rest pay a rent based on 30% of income. The number of affordable families is frozen — i.e., 4500 of 11,000 apartments. the property becomes mixed income – a % market, a % moderate, a % low and owner receives tax benefit to maintain that level…. when new families move in you to a NAUR situation like most mixed properties.

    • Get_Real

      Or we can just let he market do what markets are supposed to do. One thing Bloomberg has said I agree with “No one has a god given right to live in Manhattan.” I live here, but I pay through the nose for it.

  • Mojo Jones

    It should be sold to the tenants. At 4B that’s an average unit price of around 370k

  • Mark

    Remove all rent controls in New York City. Restore free markets. Allow the economy to boom and create affordability the natural way…through economic growth, prosperity, and rising wages. This interventionist, manipulative approach is a complete and total failure. Using the word “affordable” doesn’t make things affordable. What a joke.