The management arm at Peter Cooper Village/Stuyvesant Town is changing hands—again. According to a letter to residents obtained by GlobeSt.com, Denver-based multifamily management firm CompassRock Real Estate LLC has been appointed as property manager for the 11,250-unit, multi-building complex, replacing current property manager Rose Associates after a two-year stint. The change will be effective Sept. 1.
Unnamed sources say CompassRock is a subsidiary of CW Capital Financial Services, the parent company of CW Asset Management– the same special servicing firm that took control of the asset in 2010. People familiar with the transition say that the changes are part of a greater effort to stabilize the property, streamline management services and increase efficiencies, and is not related to the performance of Rose Associates.
Sean Sullivan, general manager at PCVST, says in the letter that the change in management is designed to be “seamless,” and tenants are expected “to see improvements over the coming months” as the management continues to “implement initiatives designed to improve quality of life” at the complex, which stretches from First Avenue to Avenue C, between 14th and 23rdStreets. “CompassRock will bring deep institutional experience and national best practices to the management of our property,” he said, in the letter. “We look forward to learning from CompassRock, instituting these best practices and continuing to focus on improving operations and services for our residents.”
While unavailable for immediate comment, David Woodward, founder and president of CompassRock, says that the company is “committed to providing the best management possible” for residents. “We’re thrilled to become part of this community and look forward to working with our residents and partners in the community to ensure that PCVST remains an attractive place to call home,” he says, in a statement.
The switch comes only two years after Rose Associates took the helm as property manger. In 2010, CW appointed Rose Associates as property manager for PCVST after Rose had been working for PCV/ST LLP, the group that bought the rental complex for $5.4 billion in 2006 and defaulted on $3 billion in debt.
CW, in working together with Rose, renovated and leased over 900 vacant units and restructured collective bargaining agreements on the property. The partners also invested in improving the property’s infrastructure and landscaping, as well as expanding amenities by adding an ice rink, a café and farmer’s market.
On reflecting on the firm’s work at the complex, Adam R. Rose, co-president of Rose Associates, says it has been “extremely gratifying to have spent two years increasing the professionalism” of property management at PCVST on behalf of our client, CWCapital Asset Management. “We are confident that CompassRock will continue this trend to the benefit of residents, staff, and visitors,” he says, in statement.
The announcement also follows the continued legal stabilization of the property. Last fall, the New York State Appeals Court affirmed a lower court ruling that Metropolitan Insurance and Annuity Co. and Metropolitan Tower Life Insurance Co., the former owners of Stuy-Town and Peter Cooper Village, must pay damages for improperly raising rents on tenants. The decision confirms Judge Richard B. Lowe III’s Court of Appeals’ landmark ruling in Roberts v. Tishman Speyer, which barred rent deregulation for an apartment in a building receiving J-51 benefits. Earlier this year, MetLife agreed to settle the lawsuit over rent deregulation.