CWCapital Asset Management is keeping it all in the family when it comes to managing Peter Cooper Village/Stuyvesant Town, the massive rent-regulated complex it has controlled since 2009.
The special servicer, which oversees properties on behalf of their debt holders, tapped CompassRock Real Estate to manage the 11,000-unit complex, beginning on Sept. 1. Both companies are subsidiaries of CW Financial so management fees stay within the same company.
CompassRock replaces Manhattan-based Rose Associates Inc., which has been managing the property since 2010, but whose contract was expiring. CompassRock was formed earlier this year to manage properties owned by CWCapital, as well as other companies.
“CompassRock will bring deep institutional experience and national best practices to the management of the property,” Andrew MacArthur, Managing Director of CWCapital, said in a statement. “In connection with the on-site team, we look forward to a continued focus on improving operations and services for our residents.”
Stuyvesant Town residents are skeptical.
“Members of our community are wary about the change,” said City Council member Daniel Garodnick, who lives in the complex and represents its residents. He added that since CompassRock is a new company, “almost by definition it has little experience managing properties such as this.”
CompassRock began managing the Riverton Houses, a huge rent-regulated complex in Harlem back in April. Riverton is also controlled by CWCapital and replaced Rose there as well.
Both Stuyvesant Town and Riverton were among the numerous rent-regulated complexes purchased during the boom by investors hoping to deregulate the units and raise rents. Both owners failed amid the recession and stopped making payments on their mortgages, leading them to be taken over by CWCapital. Residents of Stuyvesant Town/Peter Cooper Village have teamed up with Brookfield Asset Management to develop a plan to buy the complex from CW and turn it into an affordable condo.