Updated 02/16/2010 11:31 AM
Foreclosure Action Begins For Stuy Town, Peter Cooper Village
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Fears are growing at Stuyvesant Town and Peter Cooper Village as lenders are reportedly set to begin the lengthy foreclosure process today.
The New York Times reports CW Capital, the company overseeing the complex, will file an uncontested foreclosure action in State Supreme Court in Manhattan today on behalf of the owners of $3 billion in mortgages.
The foreclosure action is unlikely to immediately affect the 25,000 residents, but there are worries that services and maintenance could deteriorate at the 80-acre complex.
City Councilman Daniel Garodnick, who represents and lives in the complex, issued a statement saying the foreclosure filing is the result of a bad investment, and tenants should not pay the price.
"We will be looking for the various lenders to work cooperatively with one another and with the tenant body toward a constructive outcome that will restore stability to this community,” Garodnick said in the statement.
Tishman Speyer and Blackrock Realty announced last month that they were turning over the property after defaulting on a $16 million loan payment. The group bought the complex in 2006 for $5.4 billion.