NEW YORK CITY—CWCapital Asset Management, which controls Stuyvesant Town-Peter Cooper Village, has taken title to the property—which is Manhattan's largest apartment complex—and canceled an auction for control of it, according to Bloomberg News.
The Bethesda, MD-based company—which has been managing the 11,231-unit complex on behalf of bondholders since 2010—says it exercised a deed in lieu of foreclosure on June 3. The move comes after an unnamed investor made a bid to seize the property, the New York Times reports.
CWCapital “determined this action to be in the best interest of the certificate holders and provided the greatest stability for the community,” the company tells Bloomberg. “This 'deed-in-lieu' will have no impact on residents or on property operations.”
The transfer valued Stuyvesant Town at $3.3 billion and Peter Cooper Village at $1.1 billion. CWCapital paid $134 million in transfer taxes. The city took the lion's share at $116.6 million and the state collected $17.8 million, city records show. The auction was scheduled for June 13.
“This eliminates the circus that could have unfolded at a mezzanine foreclosure sale,” says City Councilman Daniel Garodnick, who lives in the complex. “It is the right next step that will give time for a more considered process that can protect not only the bondholders, but also the tenants and the city.”
Fortress Investment Group, which owns CW Capital, reportedly was preparing a $4.7 billion bid to buy the complex, a person with knowledge of the plan said last month. Fortress owns CWCapital.
CWCapital said it's continuing to “evaluate disposition alternatives.” The complex could still be sold to an outside buyer in the second half of the year, the company said.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
