CWCapital Asset Management and Wells Fargo & Co. (WFC:US) were sued by lenders claiming they are being cheated out of hundreds of millions of dollars in the takeover of the Stuyvesant Town and Peter Cooper Village development in Manhattan.
CW, which has managed the 11,000-unit apartment complex on bondholders’ behalf since 2010, took title to the property June 3 by exercising a deed in lieu of foreclosure. CW canceled an auction and indicated it will put the complex up for sale.
CW and Wachovia engaged in “a continuing pattern of misconduct designed to keep CW in control” of the property and “reap an unjust windfall” of $1 billion that should go to lower-level lenders who have received nothing, according to the complaint filed today in New York State Supreme Court in Manhattan.
(Hat tip: Lo Rhent at STPC Tenants Facebook)