Real Estate

Blackstone nears deal to buy Manhattan apartment complex for $5.3 bln: Source

Looking up First Avenue showing the Stuyvesant Town-Peter Cooper Village complex in New York.
Daniel Acker | Bloomberg | Getty Images

Blackstone is nearing a deal to acquire Manhattan's Stuyvesant Town-Peter Cooper Village apartment complex for around $5.3 billion, according to a person familiar with the matter who was not authorized to discuss it publicly.

The deal would put Manhattan's biggest apartment complex in the hands of the world's largest private equity firm, and end five years of squabbling and litigation that have held up a sale of the property.

Stuyvesant Town, a sprawling complex of 56 high-rise brick buildings with a private park on 80 acres on Manhattan's East Side, was at the center of a $3 billion default five years ago.

CWCapital Asset Management, a special servicer representing bondholders, took control of the complex in 2010 after its owners missed a debt payment.

The roughly 11,000-apartment complex was sold by MetLife to Tishman Speyer Properties and an affiliate of BlackRock for a record $5.4 billion at the top of the commercial real estate market in 2007.

Blackstone declined to comment on Monday. CWCapital was not immediately available for comment.