The Real Deal New York

Larry Gluck buys Staten Island complex for $30M

Stellar Management promises to keep Mitchell-Lama property affordable

July 23, 2015 03:40PM

165-185 St. Marks Place on Staten Island (inset: Larry Gluck)

165-185 St. Marks Place on Staten Island (inset: Larry Gluck)

UPDATED, July 23, 5:11 p.m.: Larry Gluck’s Stellar Management and nonprofit CAMBA Housing Ventures partnered to buy a Staten Island Mitchell-Lama housing complex for $30 million, and the developers promise not to spike rentals to market rates.

The complex, dubbed the Castleton Park Apartments, is located at 165-185 St. Marks Place and contains 454 units, according to Crain’s.

Stellar has agreed to spend an additional $30 million on upgrades to the property, which has fallen into disrepair in recent years. The deal involves $67 million in bonds from the city’s Housing Development Corp., as well as $9 million of Stellar’s own funds.

In exchange for the upgrades, Stellar will be allowed to raise rents slightly, though the hikes will be limited by area median incomes, and most increases will be offset by federal Department of Housing and Urban Development vouchers.

The building’s residents protested a Stellar buyout back in 2008, in fear of the developer’s reputation for converting Mitchell-Lama complexes to market-rate housing. But this time, Stellar has promised that its intentions are in line with Castleton Park’s current population.

“It is very important for us to be able to provide affordable housing,” said Jerry Thomas, executive vice president of Stellar Management. “To the extent this agreement is for 35-plus years, that shows our commitment to keeping it affordable and not pulling it out of the Mitchell-Lama program.”

Earlier this year, a disabled Upper West Side tenant sued Stellar Management for $5 billion over alleged maintenance neglect, and an affiliate of the developer sued an office tenant it claimed was hosting illegal sex parties. [Crain’s] — Tess Hofmann

Correction: An earlier version of this story incorrectly identified Jerry Thomas’ position at Stellar Management.