Bwahaha! Crain's New York reports that the monster $5.4 billion deal Met Life made to sell Stuyvesant Town-Peter Cooper Village to Tishman Speyer could be derailed by a "little-known provision." Apparently the provision says MetLife cannot make more than a 6% annual profit on the complex! From Crain's:
Trautman Sanders, a law firm representing the tenant group that lost its bid to purchase the complex, discovered the condition in a 1942 agreement with New York City. According to the agreement, MetLife said it would keep its rents low, earning no more than 6%, in exchange for a 25-year city tax break.
City Councilman Daniel Garodnick, who opposed the sale of the complex to developer Tishman Speyer, has sent a letter to city Comptroller William Thompson, asking him to investigate. Mr. Thompson's office is reviewing the letter.
The sale, which is the largest real estate deal in American history, is scheduled to close later this week.
Wow - if this provision holds up, it's a whole new ballgame.
Gothamist on the sale of Stuy Town.