NEW YORK CITY—A partnership led by Blackstone Group has reached an agreement to purchase Stuyvesant Town-Peter Cooper Village in a deal valued at $5.3 billion. The seller was CWCapital Asset Management.

Blackstone and Canadian investment firm Ivanhoe Cambridge will pay just under the $5.4 billion Tishman Speyer and BlackRock had agreed to pay back in 2006 for the middle-income housing complex, but defaulted on the deal four years later. Ivanhoe Cambridge is the real estate arm of Canadian pension fund Caisse de Depot et Placement du Quebec.

The sale of the 80-acre property also includes approximately $225 million in tax breaks offered by New York City in order to keep over half of the more than 11,000 apartments affordable for 20 years.

Eastdil Secured's Doug Harmon represented both parties in the deal and secured the buyer. CWCapital—which is owned by Fortress Investment Group—was represented by attorney Greg Cross of Venable, which served as lead counsel. The seller also received legal counsel from Fried Frank, led by real estate partners Jonathan Mechanicand Janice Mac Avoy.

A sale to Blackstone would end the turmoil over the ownership of the property that is home to approximately 30,000 residents. CWCapital has been in control of the property on behalf of bondholders. Spokesmen for Blackstone and for CW Capital refused comment on the reported sale of the East Side complex located between 14th and 23rd streets. CW Capital took title on the property in June 2014.

In September, a group led by Blackstone and Fairstead Capital acquired nearly 1,000 free market rental housing units in Manhattan for $690 million.