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Wednesday, April 21, 2010

The Man Who is Helping a Tenant Buy of ST/PCV?

If you been listening to the Tenant Association and politico ST/PCV talk a few weeks ago, you may have been made aware that someone is helping the tenants, behind the scenes, in their attempt to acquire Stuyvesant Town and Peter Cooper Village.

Could this be the man?.....

Read on, from NY Observer, Eliot Brown reporting:

It was something to be avoided. As America’s biggest foreclosure waiting to happen, Stuyvesant Town and Peter Cooper Village was viewed by the financial world as a $6.3 billion bet gone bad.

David Tepper saw an opportunity.

Founder of the high-risk–high-yield hedge fund Appaloosa Management, Mr. Tepper is the king of sniffing out the undervalued among the distressed, often realizing fantastic returns. After betting big on banks at their nadir in early 2009, he topped AR: Absolute Return + Alpha magazine’s list of the year’s top hedge fund earners, raking in an estimated $4 billion for himself.

Now, after buying more than $800 million worth of bonds that control Stuyvesant Town within the past year and a half—many of them risky—he is muddying up the giant foreclosure on the property, showing that he has no interest in watching from the sidelines. In late February, he filed legal action to steer the property in a new direction, in a bid to protect—or maximize—his investment, an action being fought by the special servicer organizing the foreclosure....

Mr. Tepper’s aim, of course, is transparent: He simply wants the value of Stuyvesant Town to return to at least $3 billion, the initial value of the mortgage. That way, he can realize a maximum return on his investments.

The best solution, he said, is for the tenants to buy it themselves—a plan they are pursuing—as they have the ability to pay more given that the apartments could quickly be converted to condos or co-ops.

Mr. Tepper’s advice to the tenants: Act fast, as the markets are improving.

“Nothing would make me happier than to see 11,000 new homeowners, if the first mortgage is paid,” he said. “The way things are going and the way things are improving, I hope they act fast for their sake.”

Full article here.


Anonymous said...

I wish David Tepper all the luck in the world. It would be great to buy our apartments and push out all the transients and the cranks.

Anonymous said...

is that Kelsey Grammer?

Anonymous said...

I can't understand why anyone would want to buy an apartment in Stuyvesant Town. Why sink money into something that is falling apart from old age and neglect? It's ok to rent if you are at a rent stabilized rent, but to buy with all the maintenance and associated costs? Nah, fuggedaboutit!

Anonymous said...

I wouldn't trust that face any further than I could spit at it!

Anonymous said...

is the place still a dump. cause if it is maybe a change in management will right the wrongs

Anonymous said...

The place is still a dump because we have substandard management, reduced maintenance staff, reduced security and a compactor company that doesn't shit about shit. Come over and smell the garbage sometime.