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Fortress Investment Group readying $4.7B bid on StuyTown
Private equity firm seeking cash financing as CW Capital forecloses on secondary loan
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