A new report from JPMorgan Securties claims that selling Stuyvesant Town/Peter Cooper Village to tenants/Brookfield will be the most likely outcome in no less than a year's time and, according to Crain's: "offer the best returns to the holders of the troubled property's first mortgage."
The Crain's analysis continues: "The report said that a 2011 appraisal valued the property at $3 billion,
but added that the figure seemed 'aggressive' if the complex were still
to be run as a rental building where revenue would only increase
substantially as units are deregulated. On the other hand, the report
estimated that a partial condo conversion could bring in as much as $4.4
billion. Holders of the senior mortgage are owed $3 billion. Another
$1.4 billion is owned to the holders of the mezzanine debt."
This is an obvious morale booster for the TA and Brookfield and will
reinvigorate the tenant buyout idea at a time when hopes were lessening. I still suspect that CWCapital will try auction the place and sell to the highest bidder.
Read more here: http://www.crainsnewyork.com/article/20120620/REAL_ESTATE/120629995
A similar but more detailed article online at Real Estate Weekly suggests that plaintiffs in the J51 case are going to get a bit of screwing, at least that's the way I read this:
In the report, it was also noted that plaintiffs in the J51 case have
waived their claim for treble damages and that “the liability
associated with rent overcharges is joint and several, meaning it would
pass onto any eventual buyer.
“Furthermore since the Roberts plaintiffs have not been certified as a
class, other current and former tenants could in principle sue the
owners (again with joint and several a class, other current and former
tenants could in principle sue the owners (again with joint and several
liability), leading to further litigation and potentially greater
liability. As a result, CWCapital has been quite clear in their
commentary that this case must be resolved before the workout can move
forward,” said the report.
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