By Patrick Hedlund
DNAinfo News Editor
MANHATTAN — The future of Stuyvesant Town and Peter Cooper Village took yet another turn this weekend after a creditor set a date for a rival foreclosure auction.
The announcement comes only days after a judge in Manhattan Supreme Court ruled that none of the parties vying to control the fate of the property were allowed to move forward with an auction until he says otherwise.
Despite the Sept. 2 decision, CW Capital — the asset company acting on behalf of Bank of America that owns part of the property's multibillion-dollar mortgage — announced an Oct. 4 auction in Sunday’s New York Times.
CW Capital has been trying to fend off hedge-funder William Ackman’s Pershing Square Capital, which had set its own auction date for this week.
CW Capital sued to block the sale, saying that Pershing Square Capital needed to pay off the property’s first mortgage, or approximately $3.5 billion, before it could foreclose.
Each party has discussed pursuing a tenant-led buyout of the 11,227-unit complex.
"Both sides have clearly recognized that the only route to success is in partnership with the tenants," said City Councilman Dan Garodnick, who represents the complex and is a lifelong resident of Peter Cooper Village.
"We will look to work with the party that can deliver the absolute best outcome for the community and the city."
CW Capital recently reached out to the tenant association’s financial adviser regarding a possible co-op conversion of the property.
The move was received well by the Stuyvesant Town-Peter Cooper Village Tenants Association, which stated that CW Capital’s outreach efforts fall in line with the residents’ goals for a restructuring plan.
“The tenants are not going away — our goals have to be satisfied in order for any plan to work,” Al Doyle, president of the tenants association, said in a statement.
“Getting CW Capital to recognize that is a serious step forward.”
However, Garodnick was quick to point out that both he and the tenants have yet not picked a party to throw their support behind.
"We expect that, when the judge renders a decision, the losing side will appeal and this process will likely continue for some time," he said.
"People are concerned about what the implications will be for tenants in either scenario, but both sides have made it very clear that the support of the tenant body will be central to their success."
