Blackstone and La Caisse, formerly Ivanhoé Cambridge, have obtained a $3.3 billion refinancing debt package for Stuyvesant Town and Peter Cooper Village, two properties encompassing 11,238 units in Manhattan, as reported by Bisnow.
Wells Fargo issued the funds, consisting of a $3.2 billion loan and another $167 million note.
The same entity originated $2.7 billion in Fannie Mae debt to bankroll Blackstone and La Caisse’s purchase in 2015. New York City also issued $225 million for the purchase, and in exchange, 5,000 units were converted to a permanent income-restricted status.
A partnership between CWCapital and U.S. Bank sold the assets for $5.4 billion, according to Yardi Matrix data, after Tishman Speyer was unable to repay a $4.4 billion debt on account of the 2008 Global Financial Crisis and several tenant lawsuits.
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Part of the 1940s’ multifamily deliveries, the communities initially served World War II veterans. Since its acquisition, Blackstone has invested $460 million in upgrades, including the installation of more than 9,000 solar panels.
Stuyvesant Town and Peter Cooper Village comprise 110 buildings, creating their own neighborhood in Manhattan’s Lower East Side. Apartments include one- to five-bedroom layouts ranging between 465 and 2,500 square feet.
Repaying debt on New York rent-stabilized buildings
Following the 2019 Housing Stability & Tenant Protection Act, all units turned rent-stabilized after a judge ruled in the tenants’ favor and Blackstone dropped its appeal. This latest financing deal bucks recent trends whereby landlords struggled with debt encumbering rent-stabilized communities post New York’s enacted reforms.
In February, A&E Real Estate Holdings faced a foreclosure lawsuit after allegedly defaulting on a $506.3 million CMBS loan originated by JP Morgan, according to KeyBank filings reported by PincusCo. The loan backed more than 3,500 units throughout 53 buildings, of which at least 960 apartments were rent-stabilized. Claims by A&E at the time suggested the litigation would be solved within 45 days, according to Bisnow.
In March, Flagstar Bank filed four summonses against Pinnacle Group regarding debt which amounted to more than $600 million, backing about 5,200 units of the company’s entire New York City collection of 8,700 apartments, The Real Deal reported. Two months later, the developer filed for bankruptcy protection, blaming high interest rates and the 2019 rent reform, according to the same publication.
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