Stuy Town sale will mean big payday for CWCapital

Special servicer stands to make $615 million from deal

TRD New York /
Nov.November 03, 2015 12:52 PM

Stuyvesant Town special servicer CWCapital Asset Management stands to make more than half a billion from the property’s sale to the Blackstone Group and Ivanhoe Cambridge for $5.3 billion.

The company, controlled by Fortress investment Group, will make as much as $615 million from the sale because Stuyvesant Town and Peter Cooper Village’s value climbed so far beyond its $3 billion mortgage, according to estimates by Barclays. Tishman Speyer and partners defaulted on the mortgage in 2010.

While special servicers like CWCapital usually collect a .25-percent fee on the total debt yield plus a fee when the property sells, the company claims that the jump in value entitles it 3 percent of the in-default debt, the Wall Street Journal reported.

“It’s the mother lode,” Edward Shugrue, chief executive of bond manager Talmage LLC, told the Journal. “Comb through structured finance – there’s nothing like this … That’s a pretty flippin’ crazy amount of money.”

CW stands to make $45 million from the standard servicing fees, in addition to roughly $555 million from the added value, according to Barclays. It can also claim a $15 million liquidation fee.

Fortress paid about $300 million for CWCapital when it bought the company in 2010. [WSJ] – Rich Bockmann


Related Articles

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

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

After authorities vowed review of Stuy Town deal, Blackstone changes course on vacancies
Blackstone Real Estate Debt Strategies' Jonathan Pollack (Blackstone; iStock)

Blackstone assembles biggest real estate debt fund ever

Blackstone assembles biggest real estate debt fund ever
From left: Joe Biden, Starwood Capital's Barry Sternlicht, Blackstone's Stephen Schwarzman and Donald Trump (Getty; iStock)

Where real estate’s investment giants stand on Biden vs. Trump

Where real estate’s investment giants stand on Biden vs. Trump
Stuyvesant Town (Getty)

Layoffs at Blackstone’s Stuy Town management firm

Layoffs at Blackstone’s Stuy Town management firm
From left: Tishman Speyer CEO Rob Speyer, Fiorello LaGuardia and Robert Moses. Inset: Hiten Samtani and Charles Bagli (Getty Images, Wikipedia Commons)

Tuna fish sandwiches and billion-dollar deals: Charles Bagli on other people’s money and the next life of New York

Tuna fish sandwiches and billion-dollar deals: Charles Bagli on other people’s money and the next life of New York
Brookfield’s Bruce Flatt and Blackstone’s Jonathan Gray

Blackstone and Brookfield are going mall shopping in India

Blackstone and Brookfield are going mall shopping in India
Blackstone's Jonathan Gray and a rendering of 350 Park (Vornado, Blackstone)

Blackstone eyes new 1M sf NYC headquarters

Blackstone eyes new 1M sf NYC headquarters
Blackstone Group president Jonathan Gray (Getty)

The future according to Blackstone: “Less density and a lot less new construction”

The future according to Blackstone: “Less density and a lot less new construction”
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...