How Blackstone won Stuy Town

A tale of the wheeling and dealing behind the private equity giant's $5.3B buy

New York /
Aug.August 16, 2016 10:00 AM

Editor’s note: This report was first published on Oct. 29, 2015.

TRD Special Report:In August 1947, as the first tenants were moving into Stuyvesant Town-Peter Cooper Village, workers installed a small metal plaque on the west side of its central oval footpath. It was dedicated to Frederick Ecker, president of the Metropolitan Life Insurance Company and developer of the giant housing complex.

Ecker, the plaque read, had “brought into being this project, and others like it, that families of moderate means might live in health, comfort and dignity in parklike communities, and that a pattern might be set of private enterprise productively devoted to public service.” The inscription became a mantra for the 11,200-apartment complex, which, even as Manhattan became increasingly unaffordable, remained a rent-stabilized oasis for the middle class.

But in 2002, the plaque was quietly removed. Four years later, MetLife sold Stuy Town to developer Tishman Speyer and fund manager BlackRock, who planned to aggressively convert units to market-rate. Families of moderate means were suddenly of low priority. [more]


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 CEO Stephen Schwarzman, and Starwood CEO Barry Sternlicht (Getty)
Blackstone, Starwood strike $6B deal for Extended Stay America
Blackstone, Starwood strike $6B deal for Extended Stay America
345 Park Avenue and Blackstone President Jonathan Gray (Google Maps, Twitter)
Blackstone expands Manhattan HQ
Blackstone expands Manhattan HQ
421-427 East 14th Street (Google Maps, iStock)
Stuy Town to get new 17K sf grocery store
Stuy Town to get new 17K sf grocery store
Photo Illustration of Blackstone's Jonathan Gray (Getty; iStock/Illustration by Kevin Rebong for The Real Deal)
How Blackstone’s Jon Gray undercut his UK counterpart
How Blackstone’s Jon Gray undercut his UK counterpart
Photo Illustration of BioMed Realty CEO Tim Schoen and Alexandria Real Estate Equities CEO Joel S Marcus. (Getty, BioMed)
Life sciences boom continues with 36M sf in works
Life sciences boom continues with 36M sf in works
From left: Flex’s Shragie Lichtenstein; Piñata’s Lily Liu; NestEgg’s Eachan Fletcher; and Till’s David Sullivan
These startups want to guarantee your rent
These startups want to guarantee your rent
Blackstone president Jon Gray (Photo via YouTube)
Blackstone’s quarantine-themed holiday video stars sanitizer, sourdough starter and Santa
Blackstone’s quarantine-themed holiday video stars sanitizer, sourdough starter and Santa
arrow_forward_ios

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

Loading...