Case | HBS Case Collection | May 2011 (Revised December 2011)

Stuyvesant Town - Peter Cooper Village: America's Largest Foreclosure

by Arthur I Segel, Gregory S. Feldman, James T. Liu and Elizabeth C. Williamson

Abstract

In July 2010, William Ackman, the founder of Pershing Square, is considering a potential new opportunity: the acquisition of the distressed Stuyvesant Town and Peter Cooper Village ("ST /PCV") complex. The property had recently been abandoned by its owners and had come under the control of CW Capital, the special servicer for the vast amount of debt that was in default. Any investment in a distressed property could be very risky and might require the company to seek protection in the bankruptcy courts. While the bankruptcy process was not new for Ackman, it could add significant complexity and unknown outcomes. Ackman must consider whether this is a worthwhile investment, given the ambiguous valuation and significant public scrutiny of any investment deal.

Keywords: Risk Management; Opportunities; Valuation; Insolvency and Bankruptcy; Investment; Outcome or Result; Acquisition; North and Central America;

Citation:

Segel, Arthur I., Gregory S. Feldman, James T. Liu, and Elizabeth C. Williamson. "Stuyvesant Town - Peter Cooper Village: America's Largest Foreclosure." Harvard Business School Case 211-106, May 2011. (Revised December 2011.)