By Tara Kyle
DNAinfo Reporter/Producer
MANHATTAN — Stuyvesant Town and Peter Cooper Village inched incrementally closer to foreclosure on Thursday.
CWCapital Asset Management, who represent the creditors who took over Stuyvesant Town when its previous owner defaulted on loans, filed a motion requesting the appointment of a referee to sell the residential complex, Crain’s New York Business reported.
The motion, filed to the U.S. District Court for the Southern District in New York, asked that the 11,000 unit complex be made available as either separate properties or as a single whole, with the sale going to whichever option results in the highest bids.
Unresolved rent issues, however, could slow the sale, Crains reported. For example, any new owner would be liable for paying tenants back rent, estimated by lawyers to be $200 million.
Additionally, a court ruling in October determined that Stuy Town’s owners improperly deregulated rent-stabilized apartments while taking tax breaks. However, the ruling did not outline how to recalculate current rents or whether
Owners, Tishman Speyer Properties and Blackrock Inc. purchased Peter Cooper Village and Stuy Town just before the 2006 peak of the real estate market, at a rate of $5.4 billion. They are now in default on a $3 billion mortgage.
