This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Pershing Loses Stuyvesant Town Appeal

Story updated with comments from Pershing.

NEW YORK ( TheStreet) -- Pershing Square Capital Management has confirmed the hedge fund and Winthrop Realty Trust (FUR) have lost a bid that would have stopped the foreclosure sale of the Stuyvesant Town-Peter Cooper Village apartment complex in Manhattan.

CWCapital, a representative for bondholders on the $3 billion mortgage that includes Bank of America (BAC - Get Report)and trustee U.S. Bancorp (USB - Get Report) can now sell Stuyvesant Town and Peter Cooper Village in a foreclosure auction on October 4. The foreclosure sale includes 56 buildings on 80 acres on the east side of lower Manhattan.

Pershing Square said in a press release that they intend to pursue claims that the lenders have "interfered" with the hedge fund's efforts to foreclose on equity interests that serve as collateral for Pershing's $300 million of mezzanine loans.

"Unfortunately, this decision may have the effect of precluding the ability of PSW and the tenants at Peter Cooper Village and Stuyvesant Town from participating in the restructuring of the ownership of the property and implementing a permanent affordable housing solution."

In 2006, MetLife (MET - Get Report) sold Stuyvesant to Tishman Speyer Properties and BlackRock (BLK - Get Report) Realty for $5.4 billion. Aspirations to update the buildings and increase rents turned sour for the buyers as the commerical real estate market and housing market took a turn for the worse. "The judge interpreted the contract, but there are broader clarifications that need to be made. What happens to the tenants is still unclear," Henry Owsley, CEO of Gordian Group said. "Who ever ends up buying that property could face tension from the tenents, the state and even the city could weigh in too and change the rent rules further."

Owsley added that essentially Pershing Square and other junior lenders may not lose their money because they invested after the problems started and have obtained a, "pretty good claim against MetLife."

--Written by Maria Woehr in New York.

To contact the writer of this article, click here: Maria Woehr.

To follow the writer on Twitter, go to

To submit a news tip, send an email to:

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $17.48 0.00%
BLK $358.39 0.00%
FUR $13.63 0.00%
MET $50.96 0.00%
USB $43.90 0.00%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs