NEW YORK CITY- A state Supreme Court judge has put a hold on thePeter Cooper Village/Stuyvesant Town foreclosure proceedingsscheduled for next Wednesday. The judge ordered Pershing SquareCapital and Winthrop Realty Trust, which planned to foreclose onthe property’s $300-million senior mezzanine debt, to appear incourt on Sept. 2.

The move comes a day after CWCapital Asset Management, thespecial servicer on the $3-billion Stuy-Town first mortgage, fileda lawsuit to prevent the Pershing Square/Winthrop partnership fromforeclosing on the 11,227-unit property after acquiring the seniormezz debt for $45 million earlier this month.

The order by Manhattan Supreme Court Justice Richard B. LoweIII, dated Thursday, requires the principals of PSW NYC LLC to showwhy CWCAM’s request for an injunction against foreclosing on themezz debt should not be granted. According to court records, theforeclosure on the first mortgage is tentatively set for the secondhalf of September.

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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.