The massive apartment complexes Stuyvesant Town and Peter Cooper Village are attracting interest from some key players.
A group that includes Pershing Square Capital Management and Winthrop Realty Trust hopes to gain ownership of Peter Cooper Village and Stuyvesant Town at an Aug. 25 foreclosure auction.
Investor William Ackman says the group hopes to convert rental apartments into affordable co-ops, The Wall Street Journal reports. . Ackman said his group would work with the complex's tenants association to ensure the co-ops would be affordable so people who live there now would be able to buy their units, the newspaper said.
Other creditors and potential buyers also are wrangling for control of the property.
A group led by Tishman Speyer Properties and BlackRock Inc. said early this year that it was giving up the complex to creditors.
The East River enclave has more than 11,000 apartments. It was built to house World War II veterans returning to the city.
The purchase of Stuy-Town and Peter Cooper Village in 2006 amounted to the biggest real estate deal in U.S. history. The partnership purchased the 110-building Stuy Town/Peter Cooper Village rental complex for a $5.4 billion. It is now valued at just $2.13 billion by a credit rating agency.
Jerry I. and Rob Speyer and their partner, BlackRock Realty have nearly exhausted an additional $890 million set aside for apartment renovations, landscaping and interest payments. Rents are down 25 percent from their peak, officials said.
Real estate analysts have found that Tishman's money is all but out and that the owners are at “high risk” of defaulting on $4.4 billion in loans.