http://www.stpcvta.org//my_template_group/my_template/ en jhmiii@stpcvta.org Copyright 2010 2010-03-12T18:44:22+00:00 http://www.stpcvta.org/ta/post/moelis_retained/ http://www.stpcvta.org/ta/post/moelis_retained/#When:18:44:22Z The Stuyvesant Town / Peter Cooper Village Tenants Association, which recently announced that it is actively pursuing a tenant-sponsored restructuring plan, is taking another significant step towards that end, finalizing plans to retain Moelis & Company as exclusive financial advisor. For Immediate Release March 12, 2010 Stuyvesant Town / Peter Cooper Village Tenants Association Retains Moelis & Company as Exclusive Financial Advisor The Stuyvesant Town / Peter Cooper Village Tenants Association, which recently announced that it is actively pursuing a tenant-sponsored restructuring plan, is taking another significant step towards that end, finalizing plans to retain Moelis & Company as exclusive financial advisor. The move would put the Tenants Association on equal footing with the various creditor constituencies, hedge funds and major real estate interests that have an existing interest in, or will otherwise seek to gain control of the complex.  Moelis & Company has advised many high-profile clients involved in some of the largest restructuring transactions around the world. “We are very happy to welcome Moelis & Company to our team and to benefit from the decades of experience their professionals bring,” said Al Doyle, president of the Stuyvesant Town / Peter Cooper Village Tenants Association.  “We are confident that Moelis & Company can help protect the tenants’ interests by offering us the financial and strategic advice needed to come out on top of this complex restructuring.” “We are pleased to have an opportunity to work with the Tenants Association to provide strategic advice and solutions at this important stage in the restructuring process,” said William Derrough, Co-Head of Recapitalization and Restructuring at Moelis & Company. “We believe we bring extensive real estate sector and restructuring expertise to the benefit of the Tenants Association.” As with the retainer of law firm Paul, Weiss, the Tenants Association will not be responsible for the payment of Moelis & Company’s fees. Representatives from Moelis & Company will be present to participate at a Tenants Association informational meeting this Saturday, March 13, at Baruch College at 1:30 pm. About Moelis & Company Moelis & Company is a global investment banking firm that provides financial advisory services and capital raising solutions to clients in connection with mergers and acquisitions, restructurings and other strategic matters.  The firm also manages investment funds that integrate capital with its advisory expertise.  With over 280 employees, Moelis & Company serves a broad client base through its offices in New York, Boston, Chicago, London, Los Angeles and Sydney.  For more information, please visit http://www.moelis.com. # # # 2010-03-12T18:44:22+00:00 http://www.stpcvta.org/ta/post/maloney_stands_up_for_tenants/ http://www.stpcvta.org/ta/post/maloney_stands_up_for_tenants/#When:12:53:27Z Powerful Chairwoman, Congress Member Carolyn Maloney stands up for tenants, asking tough questions of Fannie and Freddie. The Chairwoman of the powerful Joint House and Senate Economic Committee, Congress Member Carolyn Maloney, turned her looking glass this month upon on the questionable investments made by Fannie/Freddie in Stuy-Town/Peter Cooper Village. In addition to sending the letter linked below, she and her staff have also been meeting with Fannie Mae, Freddie Mac and their regulator on this, and she is working on legislation that would prevent these government-sponsored enterprises from again investing in a project like this, where the goal of the owner is to drive out affordable tenants. We urge you to read the letter, which asks some key questions and clarifies the role Freddie and Fannie might play inthe future of our community. Read the letter here: http://www.stpcvta.org/flyers/unity/030510_ltr_to_gses_re_stuy_town.pdf 2010-03-11T12:53:27+00:00 http://www.stpcvta.org/ta/post/special_tenants_association_meeting/ http://www.stpcvta.org/ta/post/special_tenants_association_meeting/#When:17:49:01Z Baruch’s Mason Hall - Enter on East 23rd St at Lexington Avenue (1,100 Seats) More details to follow. 2010-03-05T17:49:01+00:00 http://www.stpcvta.org/ta/post/organize_tenant_bid/ http://www.stpcvta.org/ta/post/organize_tenant_bid/#When:20:27:36Z Mobilization of Volunteer Building Teams, Building Leaders and Zone Leaders begins.  Momentum builds for Tenant led control. For Immediate Release Stuyvesant Town / Peter Cooper Village Tenants Association Steps Up Organizing Drive in Preparation for Tenant Bid The Stuyvesant Town / Peter Cooper Village Tenants Association, which last week informed CW Capital that it is actively pursing a tenant-sponsored restructuring plan, is backing that effort with a massive organizing drive to demonstrate that the tenants are united in that goal. The Tenants Association has mobilized a network of volunteers to reach all 11,232 apartments with unity pledges for residents to sign. “Being organized will be a key to victory — and we are already well on our way,” said Al Doyle, president of the Tenants Association. “As we have said all along, it is critical for the tenants to speak with one voice. Our position at the bargaining table is much stronger when we have our 25,000 residents united behind us.” While not legally binding, the pledges formally designate the Association to negotiate on tenants’ behalf; to express support for a plan that gives people an option to buy or continue to rent their apartment, keeps the community affordable, and preserves open space and quality of maintenance; and promises that, prior to making any agreement to purchase their apartment, tenants will first give the Tenants Association the opportunity to present a plan for their consideration. Volunteers in all 110 buildings will be distributing and collecting signed pledges on an ongoing basis to illustrate the unity among residents. Last week, Doyle sent a letter to Charles Spetka, CEO of CW Capital, the special servicer currently in control of the property, to tell him, “The Tenants Association expects to play a constructive and key role in the restructuring of Stuyvesant Town and Peter Cooper Village.” A restructuring could take several different forms, including allowing tenants to purchase their individual apartments while letting others remain renters and protected under rent stabilization laws. The Tenants Association is planning a meeting for Saturday, March 13 to give tenants additional details about how these plans could be structured. “We will be communicating with our neighbors every step of the way to make sure that whatever we propose reflects the will of this community,” Doyle said. Council Member Dan Garodnick said of the unity effort: “The tenants have an opportunity to take control of their own destiny — and to be successful, we need everyone’s active participation. Everyone in real estate and finance is watching. This is our chance to stand up and fight for the future of our homes.” 2010-02-23T20:27:36+00:00 http://www.stpcvta.org/ta/post/foreclosure_notice_is_a_formality/ http://www.stpcvta.org/ta/post/foreclosure_notice_is_a_formality/#When:05:08:28Z Reassurance from Tenants Association on an alarming foreclosure notice forthcoming in all buildings. A foreclosure suit against the current owner was filed in federal court last Tuesday, February 16th. Foreclosure law requires posting of an ALARMING notice that says “you will be allowed to stay in your apartment for the time being.”  We anticipate that this notice, intended as a consumer protection, will be posted shortly. DO NOT BE FRIGHTENED. The notice is a formality.  Your right to remain in your home is protected by New York State rent laws.  The foreclosure suit itself also makes clear that it does not affect current leases. 2010-02-22T05:08:28+00:00 http://www.stpcvta.org/ta/post/foreclosure_faq/ http://www.stpcvta.org/ta/post/foreclosure_faq/#When:15:10:55Z Read the FAQ on the legal status of Stuyvesant Town and Peter Cooper Village and how it impacts tenants. Frequently Asked Questions February 2010 We have received a number of questions from tenants about the legal status of Peter Cooper Village and Stuyvesant Town. We have created this Frequently Asked Questions document to help address them. Who is the owner of Stuyvesant Town and Peter Cooper Village today? What is the meaning of the news that there was a foreclosure proceeding commenced? Can you explain the structure of this transaction in a way that I can understand? Who is CWCapital? Has the TA had any contact with CWCapital? Will the tenants be proposing their own restructuring plan? Who will be the next manager of the property? Will there be any time that there is no manager of the property? Why are Fannie Mae and Freddie Mac important here? What is the involvement of Mayor Bloomberg in this? What is happening with the Roberts v. Tishman Speyer case? What can I do? Who is the owner of Stuyvesant Town and Peter Cooper Village today? Tishman Speyer and its partners. As you recall, there was significant news a couple of weeks ago about Tishman Speyer “walking away from the property.” However, they have not yet transferred the deed to any other party. Tishman Speyer also continues to serve as the manager of the property today. What is the meaning of the news that there was a foreclosure proceeding commenced? For tenants, this will have little immediate impact. On February 16, CWCapital commenced a foreclosure proceeding in Manhattan federal court. Press reports indicate that this proceeding will not be contested by Tishman Speyer, and will result in the transfer of the deed to CWCapital. A stable, orderly transfer of title is a good thing for tenants, and we are hopeful that this process will be conducted in a smooth and professional manner. The actual foreclosure is expected to take at least two months, and, if successful, will culminate in an affiliate of CWCapital becoming the owner of the property. That affiliate would then be able to sell the property. As explained below, the Tenants Association expects to participate in this process. Can you explain the structure of this transaction in a way that I can understand? If you’re confused, it is no surprise. This is one of the most complicated real estate deals in history. The deal was financed with approximately $1 billion in equity (Tishman Speyer, Black Rock and others). That equity is the “owner” and represents the party that takes the most risk - and is the first to lose out if the property loses money. Tishman Speyer and BlackRock also borrowed a total of $4.4 billion to finance their $5.4 billion purchase. That includes a $3 billion first mortgage (which includes participation from Fannie Mae and Freddie Mac, two government-sponsored companies) and $1.4 billion in “mezzanine loans”. On January 8, Tishman Speyer missed a payment to its lenders, creating a “default.” Generally, a “first mortgage” is the least risky investment to a lender, because it is secured by the property and is the first to get paid if a deal goes sour. The “mezzanine” lenders get paid only after the first mortgage and other property-level debts (e.g. the costs of operating the property) are satisfied. The mezzanine lenders and the first mortgage holders have varying rights set forth in the agreements between them. If the less than $2 billion current estimate of the property’s value contained in recent press reports is accurate, the first mortgage lenders would be underwater and the investments in the property of everyone below the first mortgage would be worthless. Who is CWCapital? CWCapital was appointed as the “special servicer” to represent the interest of all of the first mortgage lenders, including Fannie Mae and Freddie Mac, which were bailed out by taxpayers during the financial crisis and are now effectively owned by the federal government. A “special servicer” gets appointed to service the first mortgage loan if the loan is at risk of an imminent default or is already in default. Has the TA had any contact with CWCapital? Yes. At the request of the Tenants Association, our Council Member, Dan Garodnick, met with CWCapital to communicate our priorities. These include protecting the long-term affordability and stability of this community, maximizing choices for tenants, ensuring adequate maintenance and preserving the historic configuration of the property. Will the tenants be proposing their own restructuring plan? Yes. The TA has recently retained the New York law firm of Paul, Weiss, Rifkind, Wharton and Garrison LLP in order to advise us, including in connection with proposing our own restructuring plan. The TA will work to try to ensure that tenants will secure additional protections in this process, that we have the maximum number of choices— which could include buying our own apartments—that maintenance is secure, and that nobody interferes with the configuration of this community for development purposes. To help formulate the tenants’ proposal, the TA will be distributing a survey seeking your input regarding the community’s future, including whether you would want to buy your apartment. When you receive it, please fill it out and return it to us promptly. Who will be the next manager of the property? Rose Associates, the former manager, has been hired by CWCapital as a “transition consultant” to work with Tishman Speyer as the owner hands over the day to day operations of the complex. Rose Associates has agreed to a consultation process with tenants about the status of maintenance today, and where there is room for improvement. We expect the formal transition to a new manager to take place in the next few months. While Rose Associates is serving for now as CWCapital’s “transition consultant,” it is also possible that they may become the permanent manager.   Will there be any time that there is no manager of the property? No. Tishman Speyer has pledged to stay on until the next management team is selected. CWCapital’s hiring of Rose Associates as “transition consultant” is helpful in this regard and is consistent with CWCapital’s obligation to the first mortgage lenders to ensure that the property is managed properly - which includes having a well-qualified manager at all times. Why are Fannie Mae and Freddie Mac important here? Fannie and Freddie are government-owned companies charged with promoting affordable homeownership. As it turns out, they are reported to have provided approximately $2.1 billion in first mortgage financing in this transaction. We and our elected representatives have let it be known that we expect Fannie and Freddie to support a tenant restructuring plan. What is the involvement of Mayor Bloomberg in this? Mayor Bloomberg’s Housing, Preservation and Development Commissioner, Rafael Cestero, said the following on January 8: "Since the 1940s Stuyvesant Town and Peter Cooper Village have served the housing needs of the hardworking middle-class families of New York, and it is our overriding concern that they remain a key component of the city’s affordable housing stock for generations to come." Mayor Bloomberg, however, has not said where he stands on the issue. It is important that we continue to push him to stand with the tenants of ST/PCV. Recently, volunteers slid a set of four postcards—including one to Mayor Bloomberg—under your doors. If you haven’t already signed and mailed them, please do so now. Or send your own card urging him to speak up for ST/PCV affordability to: Mayor Michael Bloomberg, City Hall, New York, NY 10007. What is happening with the Roberts v. Tishman Speyer case? As you may know, as part of an agreement between the tenants’ lawyers and representatives for the owner, rents were temporarily adjusted for formerly market-rate tenants starting on January 1. That was a temporary agreement which was extended in early February until the end of June 2010. Under the temporary agreement, the 4,400 affected tenants will also continue to be afforded certain rights as if they were covered by the Rent Stabilization Law, including renewal and succession rights. The attorneys involved in that case anticipate that over the next few months, the rents for the approximately 4,400 affected apartments will be calculated based on the Rent Stabilization Law by an independent consultant, who has been selected but not yet formally retained. What can I do? We believe that the future of this community will be determined by a well-organized and unified tenant body. We need to communicate information quickly to tenants, and need considerable volunteer help to do that. If you are willing to volunteer as a Building Leader or Floor Volunteer, please let us know by phoning our Volunteer Line: 1 (917) 388-9558 or electronically through our website at: <http://www.stpcvta.org/kb/contact>. Choose subject, Organization and Volunteering, from the drop down list. Finally, in an effort to demonstrate to would-be future owners the unity of our community, we are asking every apartment to financially contribute something to the Tenants Association between now and April 30th. Your contribution will serve two needs: it will demonstrate your support for an affordable, tenant-led Stuy Town and Peter Cooper and will help us defray some of the expenses that lie ahead. You can also demonstrate support by paying your annual dues - $35 per apartment. Please—right now—make out a check to: ST/PCV-TA. Mail it, with your name, full address, e-mail and phone to P.O. Box 1202, New York, NY 10009-1202. Or pay online at our website: <http://www.stpcvta.org/donate>. 2010-02-19T15:10:55+00:00 http://www.stpcvta.org/ta/post/foreclosure_proceedings_underway/ http://www.stpcvta.org/ta/post/foreclosure_proceedings_underway/#When:00:12:59Z Senior creditors holding $3 billion in debt ask for court approval to foreclose on STPCV and have it sold. http://www.businessweek.com/news/2010-02-17/bank-of-america-sues-to-force-stuyvesant-town-foreclosure-sale.html Bank of America Sues to Force Stuyvesant Town Foreclosure, Sale By David Glovin and Oshrat Carmiel Feb. 17, 2010 (Bloomberg)—Trustees including Bank of America Corp., acting on behalf of senior creditors holding $3 billion in debt on Manhattan’s Stuyvesant Town-Peter Cooper Village apartments, asked for court approval to foreclose on the 80-acre property and have it sold. Bank of America and U.S. Bank National Association filed the complaint yesterday in federal court in New York against an affiliate of property owner Tishman Speyer Properties LP. Tishman Speyer and BlackRock Inc. bought the development, Manhattan’s largest residential enclave, for $5.4 billion in 2006 near the height of the U.S. real estate boom. The companies said Jan. 25 that they planned to hand over the complex to creditors after missing a $16.1 million debt payment. The plan was delayed in part because of questions over who would pay about $90 million in real estate transfer taxes. “The borrowers have failed to make any payments of the outstanding principal,” the trustees said in the complaint. Any New York property transfer requires payment of city and state taxes, said Rafael Cestero, New York City’s commissioner of Housing Preservation and Development, in an interview last week. Tishman Speyer was negotiating with CWCapital, the special servicer representing senior debt holders, over who must pay the taxes, Cestero said. The foreclosure lawsuit asks for the property, which runs from 14th Street to 23rd Street on Manhattan’s east side, to be sold and the proceeds to go to the plaintiffs to cover the mortgage, late charges, exit fees and expenses including legal costs. Foreclosure Timetable A foreclosure will likely take 12 to 18 months, Fitch Ratings Senior Director Adam Fox said yesterday in an e-mail. David Iannarone, president of CW Capital Asset Management, didn’t return a phone call seeking comment. Beth Orcutt, a CWCapital spokeswoman, said in an outgoing voice-mail message that she wasn’t in the office yesterday and that the company doesn’t comment on properties in its special servicing portfolio. Bud Perrone, an outside spokesman for Tishman Speyer and BlackRock, declined to comment. The case is Bank of America N.A. v. PCV ST Owner LP, 10-01178, U.S. District Court, Southern District of New York (Manhattan). 2010-02-18T00:12:59+00:00 http://www.stpcvta.org/ta/post/rose_associates_stuyvesant_town/ http://www.stpcvta.org/ta/post/rose_associates_stuyvesant_town/#When:14:27:28Z In a joint statement issued today, CW Capital and Tishman Speyer announced that Rose Associates has been hired as transition consultant to ensure “an efficient and seamless transition of property operations at Stuyvesant Town/Peter Cooper Village.”  Rose, a New York-based company, managed the property prior to—and for a short time after—the 2006 sale of the property by MetLife. Quoted in a February 12th report in Business Week, Tenants Association president Al Doyle said, “There are may tenants who will think that having Tishman out will probably be a positive thing.”  Councilman Dan Garodnick said, “While Rose has firsthand knowledge about the property, the real expertise is with the tenants themselves.”   2010-02-13T14:27:28+00:00 http://www.stpcvta.org/ta/post/st_pcv_tenants_assoc._retains_special_legal_counsel/ http://www.stpcvta.org/ta/post/st_pcv_tenants_assoc._retains_special_legal_counsel/#When:21:29:03Z Top law firm Paul, Weiss, Rifkind, Wharton & Garrison LLP will represent the Tenants Association in the restructuring. The Stuyvesant Town/Peter Cooper Village Tenants Association announced today that it has retained the law firm of Paul, Weiss, Rifkind, Wharton & Garrison LLP to provide counsel that will help the TA meet its goals of preserving the property’s long-term affordability and ensuring adequate maintenance. Paul, Weiss is widely recognized as one of the top law firms in the country, with robust real estate and restructuring practices—expertise the TA is seeking for the upcoming complex negotiations over the future ownership and management of ST/PCV. “This is a firm that is second to none, and we are proud to have them on our team,” said Al Doyle, president of the Tenants Association.  “If anyone thought the tenants were not a force to be reckoned with at the bargaining table, they will now realize that we are serious, we are organized, and we have the resources we need to determine our own destiny in this process and ensure we are treated fairly.” The TA selected Paul Weiss because of its experience in some of the most significant and complicated real estate transactions and restructurings of recent times.  It has represented major creditor groups and other parties in the chapter 11 reorganizations cases of Lehman Brothers, General Motors Corporation, GMAC, Charter Communications, CIT, the New York Racing Association and Pacific Gas & Electric, California’s largest investor-owned public utility and the largest public utility in U.S. history to file for chapter 11 relief.  Paul Weiss’s real estate practice includes the representation of private and governmental clients in the proposed sale and development of MTA’s West Side Railyards and Atlantic Yards, the lease and redevelopment of the World Trade Center site, the financing for the Time Warner Center in Columbus Circle and the Venetian Resort Hotel in Las Vegas, and the acquisition, sale, development and financing of thousands of units of housing and millions of square feet of office and commercial space in New York City and around the globe. The firm also represented the Miami Heat basketball team in the development of the American Airlines Arena in downtown Miami and the Government of Hong Kong in the development of Hong Kong Disneyland. “We are honored to represent the Stuyvesant Town/Peter Cooper Village Tenants Association in this matter,” said Meredith J. Kane, a partner in the Paul Weiss real estate department.  “We believe that the tenants are the key to a successful solution to the ownership of this iconic housing complex—and we are looking forward to helping them achieve their goals.” The sale of ST/PCV in 2006 was the largest real estate transaction in American history.  The deal’s collapse last month and speculation about the property’s future has been a major focus of the business and real estate media. Paul, Weiss will represent the TA without seeking compensation from tenants. “They’re putting themselves on the line for us because they believe, as we do, that the tenants are the future of Stuyvesant Town and Peter Cooper Village,” Doyle said. 2010-02-10T21:29:03+00:00 http://www.stpcvta.org/ta/post/recommended_viewing_council_member_dan_garodnick/ http://www.stpcvta.org/ta/post/recommended_viewing_council_member_dan_garodnick/#When:21:50:01Z Watch this program on your computer at http://www.cuny.tv/audiovideo/detail3.lasso?ProgramID=PR1011428 For a revealing discussion on the future of Stuyvesant Town and Peter Cooper Village, tune into CUNY TV, Channel 75, on any of the dates listed below.  You’ll hear our own Councilman Dan Garodnick examining the issues with three leaders of the real estate industry:  Joseph Ficalora, CEO of the New York Community Bancorp; James D. Kuhn, President of Newmark Knight Frank, and Steven Witkoff, CEO of The Witkoff Group—both major real estate firms. Appearing on The Stoler Report, the three real estate representatives said that the future of Stuyvesant Town and Peter Cooper Village could very well be in the hands of its organized tenant association.  Such a message from such a group is unprecedented.  Remaining showings, which you can watch on either your television or computer - http://www.cuny.tv/audiovideo/detail3.lasso?ProgramID=PR1011428 - are: Tuesday, February 9: 10:30pm Wednesday, Feb 10:  8:30am, 2:30pm; 10:30pm Friday, February 12:  5:30am Saturday, Feb. 13:    12:00 midnight Sunday, Feb. 14:    10:30am   2010-02-08T21:50:01+00:00