Stuy Town Sale Illustrates Manhattan Rebound

A lot has changed since Stuyvesant Town-Peter Cooper Village (pictured) was on the verge of foreclosure in 2010.

Five years later, Blackstone Group and Ivanhoé Cambridge have announced they are in contract to acquire the complex for $5.3B, a smidge lower then its record-breaking 2006 sale price. That's how much Manhattan's real estate market has rebounded.

Two reasons for such a quick recovery are a housing shortage causing average monthly rents to skyrocket from a high of $3,496 in 2010 to $4k, and a renewed hunger for Manhattan property from foreign pension and sovereign wealth funds. Income at Stuy Town has grown to above $200M a year, as the number of tenants paying rent-regulated rates has fallen from 71% to 45%.

The deal requires 4,500 apartments be reserved for residents making up to $130k for a family of three, and 500 for families making up to $62,150 a year. [WSJ]

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