The Real Deal New York

Is StuyTown foreclosure prelude to a sale?

CW Capital's move to take action on secondary loan worries residents
May 13, 2014 03:20PM

CW Capital plans to foreclose on a secondary loan for Stuyvesant Town-Peter Cooper Village, a move tenants fear will kick off the process of putting Manhattan’s largest apartment complex up for sale.

The complex last sold to a partnership of Tishman Speyer Properties and Black Rock for $5.4 billion in November 2006, but the duo later lost the property to lenders in 2010. Since then, Stuyvesant Town-Peter Cooper Village has been run by CW Capital, which represents a series of trusts holding a $3 billion first mortgage.

The company told the New York Times that foreclosure will have “no impact on our residents or on property operations,” but tenants and real estate experts say a sale is likely to attract many buyers — one who may look to get rid of long-term residents.

“Any plans for the future of the property must involve the tenants, who have become weary of being treated like an A.T.M. machine,” Daniel Garodnick, a city councilman who is also a lifelong resident of the complex, told the Times. “They deserve a seat at the table, and the outcome here must respect the history of the community as a home affordable to middle-class New Yorkers.” [NYT] — Julie Strickland