The Real Deal New York

Tenants to buy out Stuy Town?

August 31, 2010 11:30AM

William Ackman and Stuy Town

The mortgage holders for Stuyvesant Town’s $3.6 billion first mortgage are preparing for a tenant-led buyout, according to a letter obtained by the New York Post. As part of their campaign to block hedge funder William Ackman from foreclosing on the property, special servicer CW Capital is arranging a meeting with the tenants’ buyout advisor Moelis & Co. CW is also planning to provide Moelis with current rent rolls, which will help tenants determine whether a co-op conversion is possible and at what price. “CW’s ‘Hail Mary’ letter is filled with half-promises it knows it can’t keep,” a spokesperson for Ackman said. The letter from CW came a week after the mortgage servicer challenged Ackman with a lawsuit over his efforts to take over the property. Ackman is hoping to restructure the first mortgage through his own co-op conversion plan. [Post]


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