Stuyvesant Town Auction Postponed Again

It’s hurry up and wait at Stuyvesant Town and Peter Cooper Village, the financially troubled apartment complexes on 80 acres overlooking the East River.

For the second time this month, the planned foreclosure sale at Stuyvesant Town and Peter Cooper Village has been postponed by the lenders. The auction scheduled for Wednesday has been put off until Oct. 22, according to the lender.

The senior lenders have resolved their dispute with a rival group, according to real estate executives who have been briefed on the matter. But the lenders are still putting together the legal and corporate machinery for a takeover of the largest residential development in Manhattan.

“We’re continuing to move forward with the transition,” said Gregory Cross, a lawyer for CW Capital, the company handling the sale on behalf of the owners of a $3 billion mortgage. “It’s just taking a few more days than we expected.”

Mr. Cross declined to discuss his talks with William A. Ackman, chairman of the hedge fund Pershing Square Capital, and Michael L. Ashner, chairman of Winthrop Realty Trust. The two men formed a partnership in August to buy $300 million in secondary loans for $45 million, hoping to seize control of the property. But CW Capital was able to block their move in court.

The fate of Stuyvesant Town and Peter Cooper Village, which have served as an affordable perch in Manhattan for middle-class tenants, has been up in the air since January, when Tishman Speyer Properties and BlackRock Realty defaulted on $4.4 billion in loans. The partners bought the complexes in 2006 for a record-setting $5.4 billion.

Daniel R. Garodnick, a city councilman and lifelong resident of the complexes, said that tenants were eager to see the legal dispute resolved so that they could begin talks about an affordable conversion of the 11,226 apartments to a condominium or co-operative. “The tenants are ready to move forward to the next step,” he said. “We’re also concerned about the transition in property management. I’m concerned that further delays could result in a loss of service. Nobody wants to see that.”

Mr. Cross said that Tishman Speyer, which is still managing the complexes, is working closely with Rose Associates, the company hired to take over management.



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