Auction for Stuy Town Canceled, CWCapital Takes Property Via Deed in Lieu of Foreclosure
Jennifer Henderson June 6, 2014, 4:06 p.m.
The auction for Stuyvesant Town-Peter Cooper Village, Manhattan’s largest apartment complex, has been canceled as CWCapital Asset Management exercised a deed in lieu of foreclosure earlier this week, Bloomberg News reported.
CWCapital has managed Stuyvesant Town since 2010 on behalf of bondholders, Bloomberg said. In taking title to the property, the company paid over $130 million in city and state taxes and thwarted an outside investor from seizing the complex, according to a separate report from The New York Times.
“This eliminates the circus that could have unfolded at a mezzanine foreclosure sale,” City Councilman Daniel Garodnick, who lives in the hulking complex, told Bloomberg. “It is the right 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 CWCapital, had been planning the purchase of Stuyvesant Town for $4.7 billion, as reported. Questions loomed regarding how Fortress would finance the deal, particularly if solely through equity partners.
Even with the canceled auction, an outside buyer may still acquire Stuyvesant Town in the coming months, CWCapital told Bloomberg. Real estate executives told the Times that they expect lawsuits related to CWCapital having taken ownership.