Real Estate Weekly
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Debt & Equity

Stuy Town lenders finally getting paid back

By Sabina Mollot

Following the sale of Stuyvesant Town/Peter Cooper Village, at a record-breaking price of $5.45 billion, the property’s senior lenders who’d forked over $3 million are finally getting repaid.

Stuyvesant Town. Photo by Marianne O'Leary/ Flickr
Stuyvesant Town. Photo by Marianne O’Leary/ Flickr

According to a report issued last Thursday by real estate analysis firm Trepp “the ship has come in” finally, at least for one of the tranches of the CMBS (commercial mortgage backed securities) packaged deal. The smallest one at a measly $202.2 million – had been repaid. That piece represented 11.3 percent of the entire deal.

Sean Barry, a research analyst for Trepp, explained, “Everyone who lent that [piece of the debt] has been paid back. We anticipate that the full $3 billion [(will be repaid unless] someone files another piece of litigation, but we don’t think that’s going to happen.”

Barry said this could happen within days — or sooner. “It could be in the next hour or tomorrow,” he said on Thursday.

The report also noted that the property’s mezzanine lenders are also partaking in the spoils.

“For investors in the mezzanine classes, there were sizable repayments of prior interest shortfalls. For example, the C class in that deal received interest exceeding 20 percent of the class’s face amount.”

This was unusual, said Barry, considering the size of the transaction. “You don’t have that many $1.5 million loans any more that have defaulted.”

However, Trepp still warned that nothing was certain, given recent legal action from one lender group questioning how the proceeds of the sale will be distributed.

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