ContractsProf Blog

Editor: Myanna Dellinger
University of South Dakota School of Law

Wednesday, August 30, 2006

For Sale: Stuyvesant Town and Peter Cooper Village

Images_70The N.Y. Times reports that MetLife has engaged a real estate broker to start the bidding process for a sale of Stuyvesant Town and Peter Cooper Village. The 110-Building site rests on 80 acres of property along First Avenue between 14th and 23rd Streets in Manhattan. You don’t usually hear about acres when you hear about Manhattan real estate sales – the normal measurement being the square foot. But, with a target price of nearly $5 billion, the sale would be “the biggest deal for a single American property in modern times.”

Apparently there is interest in making the purchase:

Behind the scenes, the sale has already drawn interest from dozens of prospective buyers, including New York’s top real estate families, pension funds, international investment banks and investors from Dubai, according to real estate executives, even though the marketing book will not be released to bidders until next week.

But, the sale raises concerns about the availability of affordable housing in Manhattan:

The sale would only add to the seismic cultural shifts already under way in New York City and especially in Manhattan, where soaring housing costs have made the borough increasingly inhospitable to working-class and middle-class residents. It would be another challenge to Mayor Michael Bloomberg’s effort to stabilize and expand the number of affordable apartments in the city.

MetLife has reserved the right not to sell if the offers come in too low, but MetLife is confident that “the current market conditions are very favorable.”  Indeed, the article reports:

As one executive involved in the sale put it, “This is the ego dream of the world: 80 acres, 110 buildings, 11,000 apartments, covering 10 city blocks in Manhattan.”

[Meredith R. Miller]

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