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East New York’s Starrett City complex sells for $905M

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Brooksville Company and Rockpoint Group purchased the 46-building complex in a joint venture

Via DoomDan515/Wikipedia

East New York’s massive 46-building housing complex, Starrett City, has been sold for $905 million, reports Bloomberg (h/t Crain’s).

The buyer of the federally subsidized housing complex is a joint venture between Brooksville Company and Rockpoint Group. Seller Starrett City Associates, who has owned the 5,881-unit development since 1974, would have had had to pay off the remaining balance on the mortgage by January 2020.

The sale comes after a January ruling, when a judge handed down a verdict that resolved family battle that had ensued around the complex, with some family members of Disque Deane (who built the complex) arguing that a sale would pose financial harm and compromise its affordability.

Ultimately, the judge ruled in favor of a sale, but state officials along with the Trump administration (the president has a four percent stake in the complex) had to clear the sale as well. On April 20, U.S. Department of Housing and Urban Development head Ben Carson approved the transaction, which closed on Monday.

Per Bloomberg, Brookville and Rockpoint have agreed to invest $140 million in capital improvements in to the complex, including rebuilding a power plant as well as extending affordable housing Section 8 status until 2049 and keeping Mitchell-Lama protections in place until 2054.