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]

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's New York Newsletters
Related Stories

Texas Flips Blue, Putting Data Center Boom On Notice

Hynes Vows To Bring Property Tax Stability As New Cook County Assessor

Donalds Makes History With Win For Florida Governor, Voters OK Property Tax Amendment

Democrats Win Congress As America's Data Center Backlash Hits The Ballot Box

U.S. Hotel RevPAR Surges 7% In Q3, But Expect Easing From Here

Stock Sell-Off, Bond Market Jitters Signal Financing Trouble For AI Data Centers

Supertall Assemblage Comes Together At Long-Vacant Midtown Site: The N.Y. Deal Sheet

Fannie Mae, Freddie Mac Rewrite Underwriting Standards For NYC's Rent Freeze

Starwood Launches Residential Land JV Targeting $1B In Annual Originations

RealPage Antitrust Case Ends With Nearly $360M In Settlements For Renters

ZOM Living Entity Files For Bankruptcy To Fund Fight To Overturn $323M Judgment

How Colliers Engineering Helped A Struggling Dam Move To The Head Of The Class