CWCapital, representing senior lenders to Stuyvesant Town, was scheduled to hold a foreclosure auction on the apartment complex on Friday, Oct. 29. Instead, CWCapital paid Bill Ackman's Pershing Square Capital Management LP and Winthrop Realty Trust $45 million to dissolve Ackman's claim to the property.
“This gives CW complete flexibility with respect to what it does with the property,” said Cross. “It gives the trust complete control protective from any constituency that might want to meddle in the disposition of the property.”
Cross also said that the settlement gives his client more options for recouping the $3.7 billion they’re owed, noting that avoiding a foreclosure keeps the original loan intact, precludes the immediate payment of property-transfer taxes, and gives senior lenders the agility to restructure the mortgage for a future buyer or co-op converter.
“There’s a lot of accretive value by being able to preserve that optionality,” Cross said.
Referring to Venable's legal team, Ackman told Bloomberg that "his venture was outgunned by CW’s legal team in court."