Tenants Association to CW Capital: Time For You To Move On
The Stuyvesant Town-Peter Cooper Village Tenants Association today announced in a letter to tenants that it would begin communicating directly with the bondholders that own the debt on Stuyvesant Town-Peter Cooper Village, after repeated attempts to engage the special servicer, CW Capital Asset Management. The TA/Brookfield partnership has indicated its willingness to propose an offer structure that would satisfy CW Capital’s obligations to the bondholders without any further delay. Despite this, CW Capital has been steadfastly refusing to engage in meaningful discussion and to share the necessary financial information for the TA-Brookfield partnership to formalize a bid. Instead, CW Capital continues to stall and take advantage of its special servicing role to increase its own fees.
The ST/PCV Tenants Association hopes that the bondholders themselves, as well as Wells Fargo in its role as Master Servicer of the CMBS trusts, CW Capital’s parent company Fortress, and the relevant bond rating agencies will see the wisdom in pursuing an offer that would provide an immediate recovery, rather than waiting while CW Capital continues to keep the property in limbo as it profits off it.
Said John Marsh, President of the Tenants Association, “Despite having teamed up with word-class legal and financial advisors, Paul Weiss and Moelis & Company, and a highly credible capital partner, Brookfield Asset Management, and communicating in multiple ways with CW Capital, it consistently declines to engage with us.” Marsh continued, “This is wrong and we believe that the bondholders, Wells Fargo in its role as Master Servicer of the CMBS trusts, CW Capital’s parent company Fortress, and the relevant bond rating agencies will view this issue differently.”
“After decades of peace in Stuyvesant Town and Peter Cooper Village, the last six years have brought conflict, upheaval, and instability,” said Council Member Dan Garodnick. “While we cannot point fingers at CW Capital for creating the problem, we certainly can fault them for prolonging it.”