The Real Deal New York

L+M and BFC buy stake in housing authority properties

Developers to initially pay $150M for a half stake in 900 NYCHA units

December 08, 2014 08:01AM

From left: BFC Partners' Donald Capoccia and L+M Development Partners' Ron Moelis

From left: BFC Partners’ Donald Capoccia and L+M Development Partners’ Ron Moelis

L+M Development Partners and BFC Partners are buying a 50 percent stake in almost 900 apartments in the New York City Housing Authority’s portfolio.

The developers will pay NYCHA $150 million in the initial sale, the Wall Street Journal reported, and another $100 million over the following two years. The pair will also funnel $100 million in revenues to NYCHA over the coming 15 years, the newspaper reported. Further, L+M and BFC  plan to invest $100 million in renovating the properties, located in Brooklyn, Manhattan and the Bronx.

The developers and NYCHA, which will continue to own the land under the buildings, are set to form a partnership that will own the properties.

While most residents and elected officials welcomed the deal, local City Council member Rosie Mendez expressed some worry. “I view it as a road to privatization,” she said.

In July, New York City comptroller Scott Stringer accused the NYCHA of “mismanagement and lax oversight,” as reported. L+M and Taconic Investment Partners filed plans in September to build a 15-story building at Essex Crossing.[WSJ] — Claire Moses

 

 

  • Anonymous Toren

    BFC were the developers of the building I live in and it is a complete disaster. Donald Capoccia also attempted to sue a tenant which complained about the construction but lost. BFC is an unethical company which is only concerned with making a profit not building a great home for people.

  • Tim

    Is it me or does Donald Capoccia look cross-eyed in that photo?

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