Blank Rome Represents Wells Fargo in Closing of $2.7B Acquisition Loan
$5.3B acquisition of Stuyvesant Town-Peter Cooper Village provides large-scale preservation of affordable housing in New York City
Blank Rome LLP represented Wells Fargo Bank, N.A., in the December 18, 2015 closing of a $2.7 billion loan under the Fannie Mae DUS program for the acquisition of Stuyvesant Town-Peter Cooper Village, the largest apartment complex in New York City. The mixed-use apartment complex comprised of more than 11,000 units was acquired by The Blackstone Group, in partnership with Ivanhoe Cambridge Inc., from CWCapital Asset Management for a total purchase price of $5.3 billion.
As part of the financing structure, the City of New York and the purchaser agreed that 5,000 apartments be designated as affordable housing units for a period of no less than 20 years. Under the binding regulatory agreement entered into by the parties at closing, the majority of these units will be allocated to middle-income families. According to officials, this transaction provided the City of New York with a unique opportunity to further its plan to build and/or preserve 200,000 affordable housing units over a 10-year period. It is considered to be the largest single transaction to support the preservation of affordable housing in New York City’s history.
The Blank Rome team was led by partner Deborah Franzblau and associate Carmen Pagan; assisted by of counsel Toni Jordan, and associates Krishana Pleasant and Rhina Roberts.