New partners hope to take over Stuy Town

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.

Sign Up for the undefined Newsletter

By signing up, you agree to TheRealDeal Terms of Use and acknowledge the data practices in our Privacy Policy.

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]

Tags

New partners hope to take over Stuy Town

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.

Sign Up for the undefined Newsletter

By signing up, you agree to TheRealDeal Terms of Use and acknowledge the data practices in our Privacy Policy.

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]

Tags