New partners hope to take over Stuy Town

TRD New York /
Aug.August 09, 2010 04:00 PM

Stuyvesant Town

Winthrop Realty Trust has brought in hedge fund Pershing Square Capital Management to form a joint venture with the intention of taking over Stuyvesant Town and Peter Cooper Village, Winthrop announced today. The new entity has purchased all $300 million worth of the senior mezzanine debt on the Manhattan apartment complex, Crain’s reported. Winthrop — which already owned a portion of that senior mezzanine debt — and Pershing recently spent $45 million to buy the remainder. Winthrop has a 22.5 percent stake in the new joint venture, while Pershing owns 77.5 percent.

The $300 million senior mezzanine debt, along with the $3 billion first mortgage on Stuy Town secured by the property, is in default. Winthrop and Pershing initiated a foreclosure on the equity interests in the property and scheduled a foreclosure auction for Aug. 25. If the group wins, as it expects to, the partnership would take control of Stuy Town and assume the $3 billion debt on the property. Earlier this year, Tishman Speyer Properties and BlackRock, which together bought the 11,000-unit residential complex for $5.4 billion in 2006 near the peak of the market, defaulted on their loans. Since then, the first mortgage on the property has been handed over to special servicer CW Capital. [Crain’s]

 

Related Articles

arrow_forward_ios
Blackstone CEO Steven Schwartzman and Stuyvesant Town (Credit: Getty Images)

After authorities vowed review of Stuy Town deal, Blackstone changes course on vacancies

From left: Jonathan Gray and Steve Schwarzman with Stuyvesant Town

Behind Blackstone’s “capital strike”

October Issue is Live

The Real Deal‘s October issue is now available to subscribers!

Blackstone CEO Stephen Schwarzman and Stuyvesant Town (Credit: Getty Images)

Authorities will conduct review of Stuy Town deal in light of Blackstone’s vacancy strategy

Blackstone CEO Stephen Schwarzman and Stuyvesant Town (Credit: Getty Images and Wikipedia)

Blackstone “warehousing” rent-stabilized apartments at Stuy Town

Here’s what the $10M-$20M NYC investment sales market looked like last week

Here’s what the $10M-$20M NYC investment sales market looked like last week

What BlackRock’s leadership shakeup means for real estate

What BlackRock’s leadership shakeup means for real estate

National Cheat Sheet: HomeServices named largest US resi brokerage, housing starts hit 8-month low… & more

National Cheat Sheet: HomeServices named largest US resi brokerage, housing starts hit 8-month low… & more

arrow_forward_ios
Loading...