Stuyvesant Town Is Up For Sale as Foreclosure Continues

By Patrick Hedlund on June 22, 2010 7:23pm | Updated on June 23, 2010 6:58am

The foreclosure of Stuyvesant Town will proceed following a judge's ruling.
The foreclosure of Stuyvesant Town will proceed following a judge's ruling.
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Flickr/Marianne O'Leary

By Patrick Hedlund

DNAinfo News Editor

MANHATTAN — Stuyvesant Town will head to the auction block after a judge granted a motion Monday to foreclose on the massive East Side complex.

This newest development in the foreclosure process, which began months ago when property owner Tishman Speyer defaulted on its mortgage, will allow the special servicer in charge of the mortgage to bid on the complex, the Observer reported.

The auction ordered by the judge stipulates that the complex be sold individually or together with the adjacent Peter Cooper Village complex, the paper said.

The special servicer, CW Capital, will likely put in a high bid on the property since it would simply be paying itself, the Observer added.

Tishman Speyer handed over the properties to creditors in January when it failed to make a $16 million loan payment.

A partnership between Tishman and BlackRock Realty bought the complex’s more than 11,000 apartments for $5.4 billion in 2006 at the height of the real estate bubble, making it the most expensive real estate deal in history.

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