Starrett City Sold for $1.3 Billion
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The giant Brooklyn affordable housing complex Starrett City was sold yesterday to the highest of seven bidders for $1.3 billion.
A spokesperson for the new owners of the 5,800-unit complex, Clipper Equity, LLC, Lloyd Kaplan, said the company intends to pull the complex from the Mitchell-Lama affordable housing program, a statement that was met with great concern from elected officials and housing advocates.
“Claims by Starrett City’s management that the complex will remain affordable are disingenuous,” New York housing group ACORN ‘s executive director Bertha Lewis said in a statement. “The only way to maintain affordability at Starrett is for the new owner to commit to keeping the complex within New York State’s Mitchell-Lama program.”
Mr. Kaplan said the company would leave the program in a way that preserves long-term affordability.
The deal for Starrett City, also known as the Spring Creek Towers, will have to go before both the state and the federal department of Housing and Urban Development, both of which presently regulate the complex and could override any sale. The city would have to approve any new construction on the site.
