Stuy Town auction postponed

City Council member Daniel Garodnick still believes that "there's an outcome that will be favorable to the tenants in whatever legal process unfolds"
By Sarabeth Sanders | October 04, 2010 07:42PM

Stuyvesant Town

[Originally posted: 11:25 a.m.] The highly anticipated foreclosure auction for Stuyvesant Town and Peter Cooper Village, which, after a closely watched legal battle between its creditors, was originally scheduled for today, has been delayed until Oct. 13, CWCapital said. The special servicer, which is handling the sale for the complex’s senior lenders, would not comment on the reason for the postponement, but said in a statement that “this brief delay will not impact the transition of property management or the stability of the property.”

Last week, a panel of New York State appeals court judges denied a request by junior creditors Pershing Square Capital Management and Winthrop Realty Trust to block today’s foreclosure sale. Pershing head William Ackman had announced plans to appeal, and rumors swirled amongst those familiar with the property today that the delay was a result of a possible buyout deal of the partnership’s $45 million investment. Ackman was not immediately available for comment.

Rose Associates, which is slated to take over the property management role from Tishman Speyer once the property transfer is completed, declined to comment on the latest developments at the complex. Tishman, whose representatives were not immediately available for comment, will continue as property manager until that time, CWCapital said.

Meanwhile, the tenants association forged ahead this afternoon with a previously planned rally, intended to “urge the owners, whoever they may ultimately be, to work with the tenants association,” according to a spokesperson for Rep. Carolyn Maloney, who, despite the weather, attended the event alongside several other local politicians and more than 100 tenants.

“Today’s postponement of CW’s foreclosure sale was a distracting move that destabilizes what was on track to be an orderly process,” City Council member Daniel Garodnick said in a statement earlier today.

Following the rally, he told The Real Deal that while he woke up this morning expecting a foreclosure sale, he still believes that “there’s an outcome that will be favorable to the tenants in whatever legal process unfolds.”

“We’re talking about a conversion. Not necessarily to a co-op, but an affordable conversion that gives tenants the opportunity to buy their units if they wish, or remain as renters,” Garodnick said. “And we want to make sure that the maintenance of the property is protected during these rollercoaster-like times.”