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Blackstone, Ivanhoe Cambridge take ownership of Stuy Town

By Sabina Mollot

On Friday, Blackstone and Ivanhoé Cambridge announced that they closed on the $5.3 billion deal to purchase Stuyvesant Town and Peter Cooper Village. This means that the companies have assumed ownership and CWCapital, the special servicer since 2010, no longer has any ownership interests in the property.

Photo by Marianne O'Leary/ Flickr
Photo by Marianne O’Leary/ Flickr

“We are proud to have entered into long-term partnership with the PCVST community and the City of New York,” said Jon Gray, Global Head of Real Estate for Blackstone, in an official statement. “We look forward to working together with them to preserve what makes this community so special.”

Daniel Fournier, chairman and CEO of Ivanhoé Cambridge said, “We are honored to share with Blackstone the responsibility of the future of PCVST. This investment is a win-win for the community of 30,000 residents, for our investors and for New York.”

The deal, touted as “the mother of all preservation deals,” by Mayor Bill de Blasio, will preserve affordability at 5,000 of the complex’s apartments for the next 20 years. There are also some protections for the 1,400 “Roberts” tenants while for market rate residents, the deal maintains the status quo.

Council Member Dan Garodnick also commented on the closing to welcome the new owner.

“For too long, the residents of Stuyvesant Town and Peter Cooper have faced an uncertain future. That ends today,” he said. “We welcome Blackstone and Ivanhoe Cambridge, and look forward to working with them to deliver a stronger and more stable community. After nine years of fighting back against efforts to undermine tenants’ rights, we now find ourselves in a much better position. With the preservation of 5,000 units for middle class New Yorkers, this deal is a very positive outcome for both current and future tenants, and for the City.”

Since announcing the purchase in October, Blackstone has been issuing surveys and conducting focus groups to get tenant feedback on issues of importance to the community. Blackstone spokesperson Paula Chirhart said the focus groups have just concluded this week though the company still welcomes any feedback and is keeping its hotline for tenants open.

With regards to matters like management of the property and other issues, Blackstone plans to make additional announcements early in 2016.

Eastdil Secured’s Doug Harmon acted as the exclusive advisor in the transaction.

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