Court suspends Stuy Town foreclosure

New York /
Aug.August 19, 2010 06:00 PM

Stuyvesant Town

A joint venture between Pershing Square Capital Management and Winthrop Realty Services will not be allowed to foreclose on Stuyvesant Town and Peter Cooper Village next week, Crain’s reported. Today’s ruling comes one day after Bank of America and U.S. Bancorp, trustees for the senior lenders of the residential complex, sued to block the joint venture from foreclosing on the 110-building property. The suit charged that the partnership breached terms of the agreement for the property, which outlines how the loan will be paid by all the different creditors. The banks’ suit claims that Pershing and Winthrop will file for bankruptcy once they take control of the property and will then avoid paying the mortgage. The court has scheduled a hearing for Sept. 2 so both parties can present their cases, according to CWCapital Asset Management, the special servicer that represents the interests of the first mortgage’s holders. CWCapital is also a plaintiff in the suit, which was filed yesterday in the New York state Supreme Court in Manhattan. [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
After authorities vowed review of Stuy Town deal, Blackstone changes course on vacancies
421-427 East 14th Street (Google Maps, iStock)
Stuy Town to get new 17K sf grocery store
Stuy Town to get new 17K sf grocery store
Stuyvesant Town (Getty)
Layoffs at Blackstone’s Stuy Town management firm
Layoffs at Blackstone’s Stuy Town management firm
From left: Tishman Speyer CEO Rob Speyer, Fiorello LaGuardia and Robert Moses. Inset: Hiten Samtani and Charles Bagli (Getty Images, Wikipedia Commons)
Tuna fish sandwiches and billion-dollar deals: Charles Bagli on other people’s money and the next life of New York
Tuna fish sandwiches and billion-dollar deals: Charles Bagli on other people’s money and the next life of New York
Blackstone's Jonathan Gray and an aerial of Stuyvesant Town (Credit: (Photo by Drew Angerer/Getty Images; iStock)
Stuy Town tenants sue Blackstone to stop rent hikes
Stuy Town tenants sue Blackstone to stop rent hikes
Linda Rosenthal and Stuyvesant Town-Peter Cooper Village  (Credit: Brett Carlsen/Getty Images; Orjan F. Ellingvag/Corbis via Getty Images)
Pol seeks to punish landlords with “warehousing fee” for vacancies
Pol seeks to punish landlords with “warehousing fee” for vacancies
From left: Jonathan Gray and Steve Schwarzman with Stuyvesant Town
Behind Blackstone’s “capital strike”
Behind Blackstone’s “capital strike”
October Issue is Live
The Real Deal‘s October issue is now available to subscribers!
The Real Deal‘s October issue is now available to subscribers!
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...