From a $5.4 billion trophy purchase to foreclosed property: The 80-acre Stuyvesant Town and Peter Cooper Village complex is now in control of lenders, who, the NY Times reports, are "now expected to begin negotiations with tenants over what could be the country’s largest conversion of rental buildings to a condominium or cooperative. That could start battles among the 25,000 tenants over whether the apartments should remain affordable or be allowed to trade openly on the real estate market."
The lender, CW Capital, had to buy out the interests of other investors who were looking to seize control of the still-attractive complex. CW Capital's lawyer told the Times, "This brings one chapter to a close. We have control of the property, and we’ve resolved all the outstanding litigation. We now have maximum flexibility in dealing with the different constituencies, in particular, the tenants."
Last month, the Stuyvesant Town Peter Cooper Village Tenants Association listed a letter from CW Capital where the firm stated its goals for tenants, including "Maximizing choice and opportunity for residents to elect either cooperative or condominium ownership of their apartments, or to remain as renters under the same protections afforded by existing rent stabilization laws." STPCVTA president Al Doyle said, "The tenants are not going away — our goals have to be satisfied in order for any plan to work. Getting CW Capital to recognize that is a serious step forward."