Through the years, MetLife has been synonymous with Snoopy as its symbolic mascot to market its financial services. Now, it looks like Snoopy is looking to step down as the top dog in owning the largest residential complex in Manhattan. MetLife has moved one step closer to cashing out of one of its prized real estate holdings.
The New York-based company is selling its 80-acre, 110-building complex with 11,232 apartments known as Stuyvesant Town and Peter Cooper Village property in Manhattan and has directed all inquiries to Darcy Stacom and William Shanahan at CB Richard Ellis.
MetLife hired CB Richard Ellis, the New York Post said on August 15, to market the sprawling property that some experts say would fetch close to $2 billion. The New York-based insurance company announced July 18 that it was exploring its options and would consider a sale of the development if the right offer were made.
Tenants of the complex have long speculated that MetLife would put the development up for sale considering all the major capital improvements worth possibly $40 million to $50 million the company has made over the last decade. MetLife has replaced all the windows of the 11,232 apartments, upgraded the electrical system and renovated vacant apartments with amenities the company markets as luxury such as marble bathroom and kitchen floors. The cost of these improvements are then pushed onto existing tenants via higher rents. Rents, which reach the $2000 threshold, are considered deregulated and can be leased for a market rent to the next tenant. Market rate one-bedroom apartments can be fetched for at least $2400 and two bedrooms at $3000. Since going public in 2000, MetLife's strategy to maximize its earnings from Stuyvesant Town/Peter Cooper has also included leasing apartments to NYU students and closing its list for rent-stabilized apartments.
In 2005, MetLife struck major real estate deals in the Big Apple. MetLife sold its former headquarters at 1 Madison Avenue for $918 million, and also sold 200 Park Avenue formerly known as the PanAm building for $1.72 billion, an office building above Grand Central Terminal. If CB Richard Ellis finds a willing buyer for Stuyvesant Town and Peter Cooper Village, looks like Snoopy will be rolling in dough. — Gerald Magpily
See New York Post article
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