Investors Sue CWCapital and Wells Fargo Over $5.3B Stuy Town Sale

As if the sale of NYC's largest apartment complex wasn't making headlines by itself, four investors in Stuyvesant Town Peter Cooper Village are now suing CWCapital and Wells Fargo for $566M that CWC could be taking home from a contractual clause. 

The plaintiffs—Appaloosa Investment, Palomino Fund, Thoroughbred Fund and Thoroughbred Master—were investors in the CMBS bonds that financed Tishman Speyer's and BlackRock's acquisition of the complex in 2006. 

In 2010, Tishman Speyer defaulted on the loans and CWC took control of the property until selling to Blackstone and Ivanhoé Cambridge for $5.3B. (Pictured: Ivanhoe's Daniel Fournier and Blackstone's Jon Gray)

But the four investors believe they should get the money from the aforementioned clause to "offset losses suffered" during Tishman Speyer's slip-up. 

Wells Fargo is a defendant since it's the master servicer and paying agent of that CMBS trust. CWC was sued last year by other Stuy Town lenders for "misconduct." [TRD]

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