NYC Judge Awards BofA $3.6bn Stuy Town Foreclosure
The United States District Court is awarding CW Capital, a special servicer for Bank of America, a $3.6bn foreclosure on the collection of 56 multi-family buildings known as the Peter Cooper Village-Stuyvesant Town development in lower Manhattan. In 2006, MetLife sold Stuy Town to Tishman Speyer Properties and BlackRock Realty for $5.4bn. The two firms hoped to update the facilities and move in a higher-end tenant base by charging higher rents. It never happened. Instead the loans began to turn delinquent causing shock waves through the commercial real estate market. In February, BofA sued to have the place foreclosed and sold. Yesterday, judge Alvin Hellerstein granted that motion. According to court documents, the principal balance stands at $3bn. But the judge also awarded CW Capital more than $48m in interest and $22.5m in default interest. Attorneys' fees, maintenance charges, and other balances were also added to the bottom line. The property will sell as-is and an upcoming public auction. Potential buyers are required to bring $100m in order to bid. Write to Jacob Gaffney.