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

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