The Real Deal New York

Slate to sell Bedford-Union Armory stake amid City Hall pressure

De Blasio pledged a “hard look” at developer after Rivington House scandal

August 24, 2016 06:00PM

Bedford-Union Armory in Crown Heights (inset from left: Donald Capoccia and David Schwartz)

Bedford-Union Armory in Crown Heights (inset from left: Donald Capoccia and David Schwartz)

Slate Property Group agreed to sell its stake in the Bedford-Union Armory development in Crown Heights to BFC Partners amid pressure from City Hall.

The de Blasio administration effectively kicked Slate out of the city-backed project in response to the latter’s role in the Rivington House scandal. Slate bought the Lower East Side nursing home earlier this year after the city lifted a deed restriction on the property.

City Hall alleges that the company misled it by keeping its plans to convert the building into condos under wraps. Following the revelations, de Basio said he would take a “hard look” at whether Slate should continue with the Bedford-Union project.

The price of the stake is not clear.

“It seemed to us that it was going to be a difficult ride, even though we didn’t agree with any of the protests, and there was no merit to it,” Slate’s David Schwartz told the Daily News.

BFC and Slate planned to turn the Bedford Armory building into 300 apartments, 12 townhouses and a sports center. Half of the apartments will be affordable.

“We believe this is the right decision. It protects the vital affordable housing coming to this site, and serves the needs of this community,” a spokesperson for Bill de Blasio told the Daily News. [NYDN] — Konrad Putzier

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