From the above article:
The next largest contributor to expected losses is the
specially-serviced Peter Cooper Village/Stuyvesant Town (PCV/ST) asset
(11.2% of the pool), a 56-building multi-family complex with 11,227
units located on the east side of Manhattan in New York City. The loan
transferred to special servicing in November 2009. Subsequently, in
October 2012 PCV/ST suffered damage from Hurricane Sandy; property
restoration efforts have been completed. The special servicer continues
to pursue the remaining claim amounts from the insurance providers and
anticipates a resolution in the near term.
On June 3, 2014, the trust received title to the property via
deed-in-lieu of foreclosure. On July 3, 2014, certain mezzanine lenders
who had purchased their positions filed a complaint alleging that the
deed-in-lieu breached the terms of the intercreditor agreement, among
other claims. These mezzanine lenders are pursuing damages from the
special servicer as senior lender. The special servicer filed an initial
motion to dismiss on Aug. 18, 2014 and a motion to dismiss a second
amended complaint on March 9, 2015. Status is pending regarding the
motion to dismiss, but a final ruling is expected in the near term. Any
potential sale of the property cannot occur until this litigation is
resolved; therefore, timing of a sale remains uncertain.
In November 2012, the special servicer (CWCapital) announced a
settlement to The Roberts Litigation to address historical overcharges
and future rents for over 4,300 units. Final approval for the settlement
was reached and implementation is now complete.
An updated 2015 appraisal and an updated operating statement are still
pending, therefore, Fitch continues to model conservative losses.
Property performance is stable with 97% occupancy as of August 2015.
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