Lenders formally took control of Stuyvesant Town and Peter Cooper Village yesterday, ending a four-year odyssey that put the affordable middle-class enclave at the center of both the biggest real estate deal in history and a major financial debacle, according to an article published in today's edition of The New York Times by Charles V. Bagli.

CW Capital Asset Management LLC, which represents a multitude of investors who held the $3 billion first mortgage, effectively took control yesterday by buying out the interests of William A. Ackman, chairman of the hedge fund Pershing Square Capital, and Michael L. Ashner, chairman of Winthrop Realty Trust. The two had paid $45 million for a $300 million block of secondary loans with the hope of taking the property away from CW Capital.

Their strategy failed after CW Capital blocked them in court, although Mr. Ackman and Mr. Ashner are getting back all but the legal fees they spent. By buying the men out for $45 million, CW Capital was able to avoid future litigation, but more important, it allowed them to structure the transfer in a way that avoids, or at least defers, upward of $100 million in state and city taxes.

"This brings one chapter to a close," said Gregory A. Cross, a lawyer for CW Capital. "We have control of the property, and we've resolved all the outstanding litigation. We now have maximum flexibility in dealing with the different constituencies, in particular, the tenants."

CW Capital said in a statement that is has now "cancelled the foreclosure sale that was scheduled for Friday October 29th while it focuses on ensuring a stable transition of the property and maximizing recovery of the $3.7 billion owed to the Trust which it represents."

CW Capital has told the tenant association and real estate executives that its first priority is to try to reach a settlement over rents and overcharges for about 4,300 apartments at Stuyvesant Town and Peter Cooper Village. Last year, the New York State Court of Appeals ruled that the owners of the complexes had wrongfully deregulated and raised rents for those apartments while getting special tax breaks from the city.

The ruling brought the 4,300 units back under the city's rent regulations and put the owners in jeopardy of having to repay an estimated $200 million in rent overcharges.

"We want to settle the case," said Alexander H. Schmidt, the lawyer for those tenants.

In a separate but related move, the tenant association has talked to CW Capital about an "affordable" conversion plan, which would require a delicate balancing act between the company's obligation to recover the lenders' $3 billion investment and the tenants' desire for apartments at below-market rates.

Tishman Speyer Properties and BlackRock Realty bought the 80-acre property from the original owner, Metropolitan Life, for $5.4 billion in 2006.

The red brick buildings, built by Met Life more than 60 years ago for returning World War II veterans, were considered by investors to be a gem in the rough because of their Manhattan location and sturdy construction.

The buyers expected to triple their net income by 2011 by replacing longtime residents paying regulated rents with tenants paying higher market rates. But their plans fizzled after residents resisted and the partners failed to convert enough apartments to market rents.

An article today by Oshrat Carmiel at Bloomberg News said that Mr. Ackman said in an interview yesterday that his venture was "outgunned" by CW's legal team in court, adding that "he believed his interpretation of the loan documents was correct and that his venture was legally entitled to conduct a mezzanine foreclosure."

While Ackman and Winthrop sold their stake, the venture still may seek to lead a co-op conversion of the property and submit a plan for CW to consider, he said. "We understand the asset, we know all the people, we spent a lot of time with the tenants' association," he said. "We may choose to put a plan in going forward."