On Tuesday, January 2, a State Supreme Court judged approved the sale of Brooklyn’s gigantic Starrett City, the largest federally subsidized apartment complex in the country, for $905 million.
Judge Saliann Scarpulla of the Supreme Court of the State of New York resolved a messy family battle over the property, which was a large hurdle to completing the sale. The judge ruled, according to The Times, “that the dissidents, including children of Disque Deane, a real estate syndicator who built the complex in the 1970s, had failed to prove that they had suffered irreparable harm from the sale.”
Although, this ruling brings the sale a step closer, before it can be finalized it must get clearance from state officials as well as the Trump administration, President Donald Trump has a four percent stake in the 46-building complex.
The Times reports, “The buyer — a joint venture of Brooksville Company, a residential real estate firm, and Rockpoint Group, an investment firm — now expects to take control of Starrett City in the next two or three months. Although the name of the complex was changed to Spring Creek Towers several years ago, it is still widely known as Starrett City. A massive development, it has its own power plant, schools, recreation center and ZIP code. The sale has garnered some notoriety not just because of its size but also because President Trump has a small stake in the complex. Carol G. Deane, the managing partner of Starrett City Associates, who was behind the sale, had argued in court that she balanced the need to satisfy shareholders with a deal that could win government approval and preserve Starrett City as a home for low- and moderate-income New Yorkers.”
The extent to which the housing is affordable is still up in the air. Elected officials raised concerns in November that the sale could potentially force the new owners to raise the rents on the 5,581 residential units in the complex.
Back in September, the deal was approved by over 70 percent of the limited partners and beneficial owners.
On Tuesday, in a statement, Carol Deane said, “We are pleased with the decision denying plaintiffs’ efforts to derail the sale of Spring Creek Towers, but not surprised because of the care we put into the process and choosing a buyer who is committed to maintaining the development as affordable and a quality place to live for the 15,000 residents who call it home.”
By: Mark Snyder