The real estate market in and around New York City never sleeps. Day in and day out, there are companies and individuals looking to close a deal.
Fortress Investment Group is hoping to purchase Stuyvesant Town-Peter Cooper Village, an apartment complex in Manhattan with an uncertain future due to the fact that its owners defaulted on its mortgage four years back. In order to make a deal happen, Fortress will need financing to make a bid. According to reports, Fortress is looking to make an offer of approximately $4.7 billion.
The complex, known for being the largest rental community in Manhattan, is being managed by CWCapital Asset Management, a company owned by Fortress, at the present time.
This potential real estate transaction is being watched closely, as many remember when Tishman Speyer Properties and BlackRock Inc. walked away from the property in 2010, which marked one of the biggest collapses of the real estate crash.
In September, Stuyvesant Town-Peter Cooper Village was appraised at $3.4 billion with a Barclays' report noting that the property could fetch as much as $4.3 billion. At this time, it appears that Fortress is willing to pay more.
This story shows that some real estate transactions are more complex than others. With billions of dollars expected to change hands if a deal is reached, there are many people involved in the transaction. Not only would this be good for Fortress, but it would also work out in favor of the many people who currently reside in Stuyvesant Town-Peter Cooper Village and are hoping for a more stable future.
Source: Crain's New York Business, "Fortress is preparing $4.7B Stuy Town bid, sources say" No author given, May. 13, 2014