NEW YORK CITY-In a bid to take control of Peter CooperVillage/Stuyvesant Town, a joint venture of Pershing Square CapitalManagement and Winthrop Realty Trust has bought the seniormezzanine debt on the 11,227-unit multifamily complex. The JV paid$45 million for Stuyvesant Town Mezzanine Loans 1, 2, and 3, whichhave a face value of $300 million.

In a statement issued Monday, the JV says it has initiatedforeclosure proceedings on Stuy-Town, with the goal of becoming“the 100% controlling owner of the property.” The group hasretained the Carlton Group as exclusive advisor. Calls to Carltonfor additional comment were not returned by deadline.

Pershing Square CEO William Ackman says in the statement thatthe JV shares the objective of the Stuy-Town tenants’ association:“to complete a non-eviction, affordable, co-op conversion of theproperty, which will require the restructuring of the property'sfirst mortgage debt.” That $3-billion first mortgage, like the mezzdebt acquired by the Pershing/Winthrop JV, is currently indefault.

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.