The owners of Stuyvesant Town and Peter Cooper Village have reached a $147 million settlement to resolve claims by thousands of tenants who said they were overcharged on rent, removing the biggest hurdle to a sale of the huge Manhattan apartment complex, attorneys for both sides said on Thursday.
About 25,000 people live in Stuyvesant Town and Peter Cooper Village, a sprawling complex of 56 high-rise brick buildings with a private park on 80 acres on Manhattan’s East Side. The complex – known for its spacious apartments – was built in two stages beginning after World War II with the intention of providing homes for returning veterans and later for middle-class residents. Last month, the property sustained tens of millions of dollars of flooding damage from Superstorm Sandy.
CWCapital Asset Management LLC, which has controlled Stuyvesant Town/Peter Cooper Village since 2010, and past owner MetLife Inc will pay $68.75 million to reimburse 21,250 tenants for past overcharges under the agreement. CWCapital also agreed to end any effort to recover $78.1 million in rent reductions it has provided since the lawsuit – known as “the Roberts case” for lead plaintiff Amy Roberts – was filed in 2009.
The tenants had sought roughly $215 million in their lawsuit.