The sale of Stuyvesant Town-Peter Cooper Village, a sprawling 110-building community with 11,241 units on the East Side of Manhattan, has taken another step forward with a $2.7 billion loan.
Fannie Mae announced it is providing low-leverage, 10-year financing for the massive purchase. An affiliate of The Blackstone Group will secure the loan from Wells Fargo Multifamily Capital, one of Fannie Mae’s 25 Delegated Underwriting and Servicing (DUS) lenders.
Fannie Mae leaders said the move will help New York City maintain 5,000 rental units that are affordable to moderate-income residents over the next 20 years.
“Fannie Mae Multifamily and Wells Fargo are important partners in our effort to preserve the affordable heritage of Stuyvesant Town-Peter Cooper Village,” said Jon Gray, global head of real estate at Blackstone, in a statement. “Fannie Mae understood the complexity of the transaction and provided long-term financing, which will ensure that the community will serve as a home for working and middle-class families in New York City for years to come.”
Earlier this year, funds managed by Blackstone's Core+ real estate unit announced a $5.3 billion investment in Stuyvesant Town and Peter Cooper Village. Blackstone is partnering with Ivanhoé Cambridge, a real estate subsidiary of the Caisse de dépôt et placement du Québec, one of Canada's leading institutional fund managers, on the deal.
The sale is the latest
chapter in a stormy decade for the community, which has long been home to
teachers, firefighters, and other working-class families. In 2006, a ventured
led by Tishman Speyer Properties purchased the complex, but their plans to
remake the development and raise rents fell far short of expectations. The owners eventually defaulted on about $4.4
billion in loans, according to reports.
