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Fannie Mae To Provide $2.7 Billion in Financing for Stuyvesant Town-Peter Cooper Village Buy

Blackstone JV Will Secure Loan from Wells Fargo Multifamily Capital through Fannie Mae
December 7, 2015
As many expected, Fannie Mae will be providing financing for The Blackstone Group’s purchase of Stuyvesant Town-Peter Cooper Village, a 110-building residential community with 11,241 units on the East Side of Manhattan.

To finance the property acquisition, an affiliate of Blackstone will secure a $2.7 billion loan from Wells Fargo Multifamily Capital, one of Fannie Mae’s 25 Delegated Underwriting and Servicing (DUS) lenders.

Fannie Mae is providing low-leverage 10-year financing.

In agreeing to finance one of the country’s most significant residential communities, Fannie Mae said it will help New York City maintain 5,000 rental units that are affordable to moderate-income residents over the next 20 years.

"Preserving rental housing for moderate-income residents in New York City is a significant challenge. We are pleased to partner with Wells Fargo and play a critical role in this transaction to help maintain affordability for this historic property and the people of New York," said Jeffery Hayward, executive vice president for multifamily, Fannie Mae.

"This deal would not have been possible without Fannie Mae because there are very few financing sources in the marketplace with the expertise to execute these types of transactions,” said Alan Wiener, group head of Wells Fargo Multifamily Capital Group.

The Blackstone Group agreed to pay $5.3 billion to buy New York City’s largest apartment complex in a joint venture with Canada-based pension fund manager Ivanhoé Cambridge. The sale hinges on an agreement with the City of New York to maintain a portion of the affordable housing units in the complex for the next 20 years, while winning apparent approval to convert others to market-rate rents.

The sale price is just $100 million less than a joint venture of Tishman Speyer and Blackrock Inc. paid to buy the properties from MetLife nine years ago.

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