Stuy Town foreclosure auction set for Monday

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Stuyvesant Town

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The three senior creditors for the Stuyvesant Town/Peter Cooper Village apartment complex are expected the buy the properties at a foreclosure auction on Monday, according to Crain’s. The senior lenders, represented by special servicer CWCaptial, currently hold the complex’s $3 billion mortgage. While the mezzanine lender upstart partnership between Pershing Square Capital Management and Winthrop Realty could pose a challenge, it’s considered unlikely that they will — the team would have to bid more than the senior debt’s $3 billion face value in order to acquire the complex, which is currently valued at $1.9 billion. Still, the stakes are high for the mezz lenders, particularly for investor William Ackman, who leads Pershing Square. Experts say his investment in the complex — part of a larger $45 million investment that the mezzanine partnership made — would be worthless if the senior creditors are able to foreclose. [Crain’s]