David Tepper wants to take control of Stuy Town.
Tepper is the billionaire hedge fund manager of Appaloosa who personally made $2.5 billion last year betting on distressed bank debt.
Now he’s investing in Stuy Town’s debt.
He bought up $750 million of $3 billion in Stuy Town mortgages on Tuesday, making him a significant debtholder.
He filed papers to challenge the course of action by intervening in foreclosure (which he says will cost about $200 million more than necessary) and taking control of the complexes.
Alvin Doyle, president of Stuy Town Tenants Association, told the New York Times he was unsure whether to view Appaloosa as a friend or foe.
“We would like the entire place to remain affordable,” he said, “and we would like to own it.”
The villages were valued at $1.8 billion recently but will probably be worth much more than that in the future.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.