Ackman on Path to Own NYC's Stuyvesant Town

http://abcnews.go.com/Business/wirestory?id=11358591&page=2

But the grand plans collapsed after the market's decline and a court decision that ruled the apartments were illegally brought out of rent stabilization.

Most real estate experts have said that any new owner would likely partner with the politically well-organized tenants and convert many of the units to tenant-owned co-operative apartments.

"No future owner can or will be successful without the support and participation of the tenant community," New York City Council Member Dan Garodnick, a life-long resident of the complexes who represents Stuyvesant Town and Peter Cooper Village, said in a statement on Monday.

Ackman, in a statement, said his plans include tenant ownership.

"We share the Tenants' Association objective to complete a non-eviction, affordable, co-op conversion of the property, which will require the restructuring of the property's first mortgage debt," Ackman said.

Should a bidder offer $3 billion or more, the winner would be required to pay off the $300 million mezzanine loan.

However, many experts have said they believe the property today is worth far less than that amount, and unless someone steps up to bid $3 billion to cover the first mortgage, Ackman's joint venture will become the new owner and assume the mortgage.