Fortress Investment Group readying $4.7B bid on StuyTown

Private equity firm seeking cash financing as CW Capital forecloses on secondary loan

May.May 14, 2014 08:30 AM

Midtown-based private equity firm Fortress Investment Group intends to make a bid to buy the beleaguered Stuyvesant Town-Peter Cooper Village.

The firm plans to make an offer of $4.7 billion, but is looking for cash financing from equity partners. CW Capital said yesterday it will foreclose on a secondary loan for Manhattan’s largest apartment complex. Tenants are concerned this will lead to the sale of the complex.

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.

Some bidders might be deterred by StuyTown’s turbulent past, Joshua Stein of commercial real estate law firm Joshua Stein PLLC told Bloomberg.

“All these bidders who otherwise might be very interested may say, ‘you know what? Too many people have had too many unpleasant surprises at this location,’” Stein said. [Bloomberg News]Mark Maurer

Related Articles

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

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

Brookfield's largest-ever $15B property fund has invested in properties from New York (666 Fifth Avenue) to Bangalore (the Leela Palace hotel) (Credit: Brookfield, Getty Images, Leela)

Real estate fundraising hits lowest level since 2013

From left: Jonathan Gray and Steve Schwarzman with Stuyvesant Town

Behind Blackstone’s “capital strike”

A rendering of Tower Fifth with Harry Macklowe (Credit: Getty Images)

Harry Macklowe just got $192M closer to building his Midtown skyscraper

October Issue is Live

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

Blackstone CEO Stephen Schwarzman and Stuyvesant Town (Credit: Getty Images)

Authorities will conduct review of Stuy Town deal in light of Blackstone’s vacancy strategy

Blackstone CEO Stephen Schwarzman and Stuyvesant Town (Credit: Getty Images and Wikipedia)

Blackstone “warehousing” rent-stabilized apartments at Stuy Town

The Closing: Dean Dakolias

The Closing: Dean Dakolias