Following the Tishman Speyer default, Fannie Mae will back Blackstone and Ivanhoé Cambridge’s $5.3B acquisition Stuyvesant Town-Peter Cooper Village deal with a $2.7B credit guarantee.
Fannie Mae’s repayment guarantee means the US government will back the blockbuster deal, which Wells Fargo will originate and pass on to the mortgage giant. NY Sen. Chuck Schumer lobbied Fannie Mae’s overseers to ensure backing went hand-in-hand with preserving affordable housing in the development, The Real Deal reports.
Alan Wiener, head of Wells Fargo Multifamily Capital Group, says Fannie Mae’s involvement was crucial to close the deal. It's one of the “very few financing sources in the marketplace with the expertise to execute these types of transactions,” Wiener says.
Fannie Mae's backing comes on the heels of a lawsuit over the proceeds of the Stuy Town sale. [TRD]
