CWCapital Appoints Rose StuyTown Manager Amid Delay Of Auction

CWCapital Asset Management LLC today appointed Rose Associates Inc. as property manager of Manhattan’s Stuyvesant Town-Peter Cooper Village as it delayed a planned foreclosure auction, the company said in a statement.

Rose Associates, former manager of the 80-acre apartment complex, will take over as of 5 p.m., said Travis Ferber, a spokesman for CWCapital. A foreclosure auction was moved to Oct. 29 from today, the third delay this month, he said.

The appointment of Rose Associates comes as CWCapital, which represents holders of the $3 billion senior mortgage, “moves toward full control of the property,” Charles Spetka, chief executive officer of CW Financial Services, said in the statement. CWCapital is part of CW Financial.

Ownership of Stuyvesant Town has been in question since January, when a venture led by affiliates of Tishman Speyer Properties LP and BlackRock Inc. defaulted on its mortgage and ceded control of the property to lenders. CWCapital hired Rose Associates in February to advise on a transition while Tishman Speyer remained manager. The complex, on Manhattan’s east side, is home to more than 25,000 tenants.

“The tenants are relieved to have new management in place,” New York City Councilman Daniel Garodnick, a resident of Peter Cooper Village, said in a statement today. “There should be no question of who is accountable for the day-to-day upkeep of the 11,000 apartments and security on the grounds.”

Investor Group Talks

CWCapital had delayed foreclosure proceedings originally planned for Oct. 4 as it negotiated with an investor group led byWilliam Ackman to buy its $300 million share of junior debt on property, people with knowledge of the talks said earlier this month.
The tenants are “eager” to see the creditor dispute resolved so that a new owner may emerge, Garodnick said Oct. 12.

A tenant meeting with elected officials including U.S. Representative Carolyn Maloney and Manhattan borough President Scott Stringer is planned for Oct. 30 at Baruch College, according to fliers distributed to residents this week.

Rose Associates is an 80-year-old firm that manages about 22,000 apartments in the New York metropolitan area, according to court papers filed by CW. The company managed Stuyvesant Town for three and a half years under owner MetLife Inc. before the property’s 2006 sale, according to the court papers.

CWCapital said in the papers that it has spent “millions” on preparation plans that include updating the computer system that governs rent, maintenance records and the private security force; reviewing contracts with at least 89 vendors; and recruiting new management to work on-site.

Working With Tishman

“Rose Associates has been working closely with Tishman Speyer on all property management issues,” Spetka said in today’s statement. “We are confident they now understand what is necessary to assume full management responsibility.”

Tishman Speyer resigned as manager of the buildings on Sept. 23, according to court papers filed that day by CWCapital. Tishman Speyer agreed to stay on an “as-needed basis” but has refused to manage the property once title is transferred to a new owner. Sixteen members of the company’s Stuyvesant Town- Peter Cooper Village management staff — including those in positions equivalent to CEO and chief operating officer — will leave when Tishman Speyer does.

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