Wells Fargo leading $2.5B financing of Stuy Town buy

Loan likely to be provided through Fannie Mae and/or Freddie Mac

TRD New York /
Oct.October 28, 2015 08:43 AM

Megabank Wells Fargo is taking the lead on $2.5 billion in debt financing for the Blackstone Group and Ivanhoe Cambridge’s acquisition of Stuyvesant Town.

The loan will carry a loan-to-value ratio of about 50 percent, and will most likely be delivered through Fannie Mae, Freddie Mac, or both, anonymous sources told the New York Observer.

“We would consider participating in any refinancing of [Stuyvesant Town-Peter Cooper Village] that has the support of the city and the tenants and that preserves affordability at the property,” a Freddie Mac spokesperson told the Observer in an email.

If that approach fails, Blackstone and Ivanhoe Cambridge would likely securitize the debt in form of commercial mortgage-backed securities, the sources said. Roughly $3 billion in CMBS debt from the previous ownership will likely be paid off entirely, the Observer reported.

Stuy Town’s new owners will also receive a $144 million loan from the city in exchange for a promise to maintain 5,000 units of rent-stabilized housing in the complex.

The partners entered into contract to buy the 110-building, 11,232-unit property for $5.3 billion earlier this month. [NYO]Ariel Stulberg

 

Related Articles

arrow_forward_ios
Jonathan Gray

Moving out: Blackstone sells remaining stake in Invitation Homes

Clockwise from left: 10 Jay Street, Rochdale Village and 46-06 57th Avenue (Credit: Google Maps)

These were the top 10 outer borough loans last month

From left: Brookfield's Ric Clark, 3333 Broadway and L+M's Ron Moelis (Credit: Brookfield, L+M, StreetEasy)

L+M, Invesco close on Putnam portfolio with $823M in Wells Fargo financing

Blackstone's Jonathan Gray (Credit: Getty Images and iStock)

Here’s a look at Blackstone’s industrial plays after its record-breaking portfolio purchase

From left: Jonathan Gray and Steve Schwarzman with Stuyvesant Town

Behind Blackstone’s “capital strike”

October Issue is Live

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

Blackstone's Jonathan Gray (Credit: Getty Images and Wikipedia)

Blackstone buys Colony Capital’s warehouse portfolio for $6B

Jackson Park at 28-40 Jackson Avenue and Tishman Speyer's Rob Speyer (Credit: StreetEasy and Tishman Speyer)

Tishman Speyer locks in $1B in financing for Jackson Park

arrow_forward_ios