The unending story of Stuyvesant Town continues! Once again tenants in Stuy Town and Peter Cooper Village are trying to buy the 80-acre property so as to convert its 11,232 apartments to condominiums or a cooperative under a plan in which residents could buy their apartments or remain as rent-regulated tenants. If it happens it "would be the largest conversion in the country." Seriously!
To make their bid for the complexes—which financially has never recovered from its $5.4 billion sale to a group led by Tishman Speyer Properties in 2006—the current tenants in the storied area structures teamed up with Brookfield Asset Management (yes, the guys who own Zuccotti Park through a subsidiary) and now have to persuade CW Capital LLC (which represents the holders of the property's $3 billion mortgage) to accept their plan. They hope to either buy the whole thing outright or perhaps work out a structured deal.
"We are going to work with CW and probably in the form of making a bid to buy the loan or the property from them—and then to execute on the plan with the tenants," Barry Blattman, a senior managing partner at Brookfield, told the Journal. "I think we can deliver to them, for the benefit of the bondholders they represent, a very good exit."
"We hope that CW Capital recognizes the historic importance of this community and what the tenants are endeavoring to do," said City Councilman Daniel Garodnick, a lifelong resident who is working with the tenant association, told the Times. "We look forward to putting together a plan that will not only satisfy CW’s bondholders but also protect the long-term stability and affordability of our community."
One big holdup? CW Capital says that before anything else it wants to resolve some of the outstanding rent-related lawsuits related to Stuy Town as their outcome could have a direct effect on its value. And of course if they are persuaded to sell figuring out the details of a conversion will be one of the all time great headaches. Stuy Towners can be a touchy lot.