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Tuesday, May 13, 2014
Yes, But is it Legal?
I'm not a lawyer, and I don't play one on TV, but I can't help wondering if the incestuous relationship in the possible purchase of Stuyvesant Town and Peter Cooper Village is legal.
Here's the trail:
CWCapital is the special servicer in charge of PCVST. "CW Capital’s primary responsibilities are to maximize recoveries and mitigate risks and losses for the first mortgage investors." CWCapital was sold to Fortress Investment Group a few years ago, in 2010, the very same year that Tishman Speyer defaulted on PCVST and had to give reins over to...CWCapital. Now Fortress Investment Group is seeking financing to buy....Stuy Town and Peter Cooper Village. (Note: Like Tishman Speyer, they are not using their own money, but seeking outside financing.) Shouldn't the bidding on this property be on the "open market"? Did Fortress Investement already have a plan to buy PCVST from the very beginning, in which case the TA interest in buying the property with Brookfield as a partner was a Quixotic, pitiful hope that wasted time, energy and emotions? (A couple of years ago, I heard from a well-positioned inside source that the there was no way the property would be sold to the tenants. This appears not to have been a prediction, but a statement of fact, if the above all pans out.)
In it's a small world department, we learn that "Fortress was founded as a private equity firm in 1998 by former BlackRock and UBS executives." BlackRock was in partnership with Tishman Speyer when this complex was sold by MetLife back in 2006.
The real concern is that CompassRock (a subsidiary of CWCaptial) has run this place terribly and would probably continue on as manager, since CompassRock=CWCapital=Fortress Investment. I'm almost willing to have Ivanka Trump run this place rather than these bastards.
Whatever the connections and whatever the plans, we do see, once again, that we, the tenants, are insignificant to the Powers That Be and will always be. It's a big fucking Monopoly game, and we don't even have the money or influence to own Mediterranean Avenue.