BofA, Bancorp try to block Stuy Town auction

Stuyvesant Town and Peter Cooper Village

Bank of America and U.S. Bancorp are in a race to block a foreclosure auction for Stuyvesant Town, according to Crain’s, putting a hitch in hedge funder William Ackman’s designs on taking over the 110-building complex. Ackman, whose firm Pershing Square Capital Management partnered with Winthrop Realty Trust last week to buy a $300 million mezzanine loan on the complex, has pitched a plan to convert the development into co-op units, selling the apartments one-by-one. After taking the mezz loan, the partners scheduled an Aug. 25 foreclosure auction, which they would angle to win. But BofA and Bancorp filed a suit in New York State Supreme Court today, arguing that Pershing and Winthrop’s plan violates the terms by which the loan on the property may be paid off. No word yet on when the court will weigh in on the suit. [Crain’s]

Sign Up for the undefined Newsletter