Nixon Peabody served as regulatory counsel to Brooksville Company LLC and Rockpoint Group on the transaction
Brooksville Company and Rockpoint Group have closed on their purchase of Spring Creek Towers for $905 million from Starrett City Associates. State and federal regulators approved the sale of the nation’s largest subsidized affordable housing complex, which is still often referred to by its former name Starrett City.
Brooksville and Rockpoint will extend the current federal Department of Housing and Urban Development Section 8 protections 20 years through 2049 and Mitchell Lama protections by 15 years through 2054. They will also invests over $140 million in capital improvements.
Spring Creek Towers houses approximately 15,000 residents living in 5,881 apartments in 46 buildings. Spanning 153 acres, the complex stretches along Pennsylvania Avenue just north of the Belt Parkway in Brooklyn, New York.
Every apartment is subsidized to maintain affordability. Approximately 60% of the units participate in HUD’s Section 8 rental assistance program, and the remaining 40% participate in HUD’s Section 236 interest rate reduction program and the New York State Division of Housing and Community Renewal’s Mitchell Lama program. The development has a standalone power plant, 90 public safety workers, a 100,000 square-foot fitness and community facility, 125,000 square feet of retail space and over 100 acres of community parks and green space.
As previously reported in GlobeSt.com, plaintiffs filed a lawsuit, trying to stop Starrett City Associates general manager Carol Deane from selling the property to Brooksville and Rockpoint. The plaintiffs included Carol’s four step-children and minority interest shareholders.
Carol had inherited Starrett City from her husband Disque D. Deane. The New York Times had reported on the drama involved with the property: Carol met Disque through his daughter Marjorie, who was her college roommate. His divorcing his wife for Carol had estranged his four children.
The lawsuit alleged the process of the marketing the property was flawed and the $905 million sale price was too low. However, the judge ruled against the dissident shareholders, allowing the sale to proceed.
Nixon Peabody’s deal team included Affordable Housing partners John Kelly (Picture) and Aaron Yowell, strategic policy advisor Deborah VanAmerongen and associate Dana Roper.
Law Firms: Nixon Peabody LLP;