Starrett City deal closes for $905M

Brooksville and Rockpoint completed the deal on Monday

May.May 08, 2018 03:20 PM

From left: Starrett City, Paisley Boney, Andrew MacArthur, Bill Walton and Keith Gelb

UPDATED: May 8, 8:10 p.m.: Brooksville Company and Rockpoint Group have officially closed on their $905 million deal for Starrett City, the sprawling Brooklyn affordable-housing complex that is partially owned by President Trump.

The companies received approval from state and federal regulators and completed the transaction on Monday, according to Bloomberg. They purchased the complex from Starrett City Associates, which has owned it since its 1974 opening, and is controlled by Carole Dean, the wife of the late Disque Deane.

Some minority owners — the children of Disque Deane — claimed in a lawsuit that a higher bid was improperly rejected, though that case was dismissed earlier this year.

Brooksville, led by former CWCapital Management managing director Andrew MacArthur, and Boston-based private equity shop Rockpoint agreed to put $140 million toward renovating the 5,581-unit complex to secure their approvals. They will also extend the Section 8 affordable housing component through 2049 and the Mitchell Lama protections through 2054. One-bedroom apartments in the complex start at $1,191, while two-bedrooms start at $1,460, and three-bedrooms start at $1,783.

Cushman & Wakefield’s Doug Harmon advised the sellers on the deal.

Brooksville and Rockpoint were in talks with Wells Fargo to get $470 million in financing for the transaction.

In January, The Real Deal profiled Rockpoint, which has quietly emerged as one of New York City’s most active real estate investors in recent years.

Trump owns a 4 percent stake in the property, according to financial disclosures he made prior to the election. [Bloomberg]Eddie Small

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