NEW YORK CITY-Lawyers for both senior lenders and mezzanine debt holders on Peter Cooper Village and Stuyvesant Town argued their positions before a Manhattan state Supreme Court judge Thursday, but left the courthouse without a decision one way or the other. Justice Richard B. Lowe III said he would rule later this month, according to published reports, on whether a joint venture of Pershing Square Capital Management and Winthrop Realty Trust may go ahead with its plan to foreclose on the 11,227-unit apartment complex on the basis of controlling $300 million of mezz debt.

The JV, PSW NYC LLC, bought the mezz debt last month for $45 million, or 15 cents on the dollar, and planned an August 25 foreclosure auction. That plan ran afoul of the senior mortgage holders, who had foreclosure plans of their own after the complex’s ownership defaulted on the $3-billion mortgage at the beginning of this year. CWCapital, which represented the lenders, filed suit to block PSW’s sale.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.