Stuy Town to be sold at auction
A state appeals court ruled against hedge fund manager William Ackman yesterday, paving the way for bondholders to sell the massive Manhattan apartment complexes Stuyvesant Town and Peter Cooper Village in a foreclosure auction next week.
The ruling denied a request by a joint venture between Ackman’s Pershing Square Capital Management and Winthrop Realty Trust to reverse a lower court ruling that barred them from elbowing past holders of $3 billion in mortgage bonds to take control of the properties.
The bondholders have scheduled an Oct. 4 auction to sell the properties to the highest bidder. About 25,000 people today live in the 11,277 apartments.
Tishman Speyer bought the 56-building complex for $5.4 billion in 2007, but defaulted on its loans.