East New York
July 25, 2008
And Then There Were 4: Starrett Bids Winnowed
Crain's and the Times have the latest word on the sale of Starrett City, the massive East New York affordable housing complex. The 5,881-unit property's owners have narrowed down the field of bidders to four, and the price tag is expected to be between $800 and $900 million, making it one of the biggest real estate deals of the year. Aside from affordable housing groups and nonprofits, some of the names among the four teams whose offers are being considered include the Related Companies, Westbrook Partners, and the Clarrett Group. One of the more interesting facets of the deal is that bidders are examining whether it'll be possible for them to build additional housing and/or stores at Starrett. Per Crain's, some of the groups are looking to build up to 1,000 additional affordable housing units.
Four Finalists selected for Starrett City [Crain's]
Four Groups Invited to Make Final Bids for Starrett City [NY Times]
Photo by ntang.
July 9, 2008
Starrett Bids Ranging From $700M to $900M
Eight bids for Starrett City, the enormous East New York affordable housing complex, were submitted yesterday. Offers for the 5,881-apartment property are going from $700 million to $900 million, a great deal less than the $1.3 billion that real estate firm Clipper Equities wanted to pay for Starrett last year. Clipper's bid was blocked by state officials last year on the grounds that it was too high to ensure continued affordability at the complex; last month, Starrett's current owners made a deal with the city, state and federal government to keep the complex affordable for the next 20 years. The current bidder mix includes private development firms and affordable housing nonprofits. “We are light-years ahead of where we were over a year ago when an oversized and overpriced bid for Starrett City would have changed the development forever and forced thousands of tenants from their homes,” said Senator Charles Schumer, who played a big part in blocking the Clipper buy. “The good news is that we have a framework in place that will protect the next generation of Starrett City residents and keep this New York City landmark affordable in this sale.” The smaller offering prices this year for Starrett reflect not only the fact that the 46-tower property will need to stay affordable but also that the real estate boom's days are behind us.
8 New Bids for Starrett City Complex [NY Times]
Bidders Prep Starrett City Offers [Brownstoner]
Photo from Gotham Gazette.
July 1, 2008
NYPD Records Crime Dip in Brooklyn North
Here's a hopeful report: Crime in Brooklyn North precincts—which cover East New York, Bed-Stuy, Crown Heights, and Brownsville—is down by more than 3 percent so far this year, according to the Daily News, with the murder rate 20 percent lower than in 2007 and burglaries down by 12 percent. There have been nine fewer murders in East New York in 2008 than there were at this point in 2007. The neighborhood had the highest number of murders, 31, in the city last year. There's also been a 12 percent crime reduction in Bed-Stuy and a 10 percent decrease in Crown Heights. The NYPD says the city's decision earlier this year to have more rookie cops patrolling the streets of high-crime neighborhoods has led to the declines.
Influx of Cops Helps Cut Crime, Residents Still Wary [Daily News]
Photo by ultraclay!
June 30, 2008
Bidders Prep Starrett City Offers
What's likely to be the biggest real estate deal in Brooklyn this year is starting to take shape. There are now seven confirmed bidders for Starrett City, the massive East New York affordable housing complex, according to Crain's: The Bluestone Group, Christian Cultural Center coalition, Enterprise Community Partners, L+M Development Partners, The New York Housing Partnership, and Omni New York. The deadline for bids is July 8th, and they're expected to range from $600 million to $1 billion. Omni is headed by ex-Met slugger Mo Vaughn and has other investments in East New York; L+M Equity's many affordable projects in Brooklyn include redeveloping Wallabout's Brig and building the affordable component at Williamsburg's Schaefer Landing; the Christan Cultural Group is a local church with 29,000 members; and Bluestone is part of the team developing the Public Place property in Gowanus. After July 8th, Starrett City's current owners are going to narrow the field of bidders to two or three finalists and consult with local, state, and government officials in order to choose a winner.
Seven Groups Ready Bids for Starrett City [Crain's]
Photo by gkjarvis.
June 10, 2008
NYCHA Budget Woes Could Kill Long-Delayed ENY Facility
The Times has a sad, frustrating story about how the the New York City Housing Authority may be abandoning its plan to build a community center in East New York's Marcus Garvey housing project. NYCHA tore down a playground in the project eight years ago and started construction on the 5,500-square-foot center that was supposed to rise in its place. Although the facility is now mostly completed, NYCHA says it may not have the funds to operate the center—or nearly 100 others around the city. “NYCHA has taken a big hit,” says Councilman Erik Martin Dilan. “The children’s programs are obviously in jeopardy, and unless we save them, we might as well set up gang recruitment centers. Kids need their community centers to stay out of trouble.” The East New York building, which is supposed to serve the more than 1,048 families who live in the project, has been plagued by delays rooted in rising construction costs and the bankruptcy of a contractor. NYCHA, meanwhile, is facing a $195 million budget deficit this year, which many believe will lead to worsening conditions at public housing around the city.
Promised Brooklyn Community Center May Not Open [NY Times]
NYCHA Funding Shortfall Could Mean Dark Days for Projects [Brownstoner]
June 2, 2008
'Model Agreement' Will Keep Starrett Affordable for 20 Yrs
A deal between Starrett City's current owners and state, city, and federal officials will ensure that the 5,881-apartment complex in East New York remains affordable, according to the Times. The agreement will work, in the main, by covering most Starrett units under the Section 8 program for a 20-year term. The property is about to go back on the market. Federal officials blocked Starrett's sale last year on the grounds that the winning bid for the complex, $1.3 billion c/o a group of investors led by David Bistricer, was too high for the would-be owners to maintain affordability. Stareett City is made up of 46 towers and 140 acres, and it is the largest federally subsidized housing complex. The new sale of Starrett is expected to draw bids between $600 million and $800 million, and the city will help the winning bidder gain approval to build new retail and housing on the site. Tenant advocate Bertha Lewis of Acorn called the plan "a model agreement" because it could influence how other subsidized housing complexes are sold off.
In New Sale, Starrett City Would Stay Affordable [NY Times]
Starrett City Measure Wending Through Congress [Brownstoner]
New Starrett City Bids Coming In [Brownstoner]
Photo by ntang.
May 22, 2008
Six New Charter Schools To Open in Brooklyn
At least six new charter schools are expected to open in Brooklyn within the next two years. Park Slope's Brooklyn Prospect Charter School has already been reported by the Daily News, but applications for four other K - 8 charter schools were approved by SUNY on the same day, all to be managed by Uncommon Schools. Mini "scholars" at the four schools can expect rigorous instruction from 7:30 a.m. until 4 p.m. Excellence Charter School for Girls, in the Bed-Stuy school district, and Leadership Preparatory East New York are scheduled to open this fall. Leadership Preparatory Flatbush and Brownsville are scheduled to open the following school year. Uncommon Schools also announced plans for their first charter high school in Crown Heights, located at 1485 Pacific Street at Kingston Avenue. Uncommon Schools spokeswoman Megan Zug said the organization purposefully chooses low-income neighborhoods "to close the achievement gap between low-income and high-income students."
Continue reading "Six New Charter Schools To Open in Brooklyn"
May 13, 2008
Starrett City Measure Wending Through Congress
A bill that would preserve affordability at Starrett City, the largest federally subsidized rental complex in the United States, was overwhelmingly approved in the House last week. The bill was introduced by Rep. Edolphus Towns and co-sponsored by Rep. Nydia Velázquez. East New York's Starrett City has 5,800 units and 14,000 residents, and the government wouldn't allow its current owners to sell the property to a group of investors who bid $1.3 billion for it last year because it was believed that the high sales price meant the housing stock wouldn't be kept affordable. The bill converts Section 8 and Rental Assistance Program (RAP) contracts at Starrett to a project-based Section 8 contract, which ensures longer-term affordability for those particular units. (We're not clear on whether this applies to all the massive complex's units or just some of them.) According to an article in the Eagle, the measure "creates the conditions necessary for purchasers of Starrett City to secure the long-term financing necessary to purchase the property, therefore allowing them to keep the units affordable." As of late last week, the bill was set to become an amendment in one of the foreclosure-relief bills currently being considered by the House. It wasn't, however, amended to the controversial anti-foreclosure bill that passed last week and that President Bush has vowed to veto.
Rep. Towns' Press Release on Starrett Bill [house.gov]
Starrett Bill [govtrack.us]
Reps. Towns, Velázquez Report Success for Starrett City [Brooklyn Eagle]
Photo by ntang.
March 20, 2008
Closing Bell: More Potential Starrett Buyers Line Up
Crain's reports there are now four potential buyers for Starrett City, the 46-building, East New York Mitchell-Lama complex. The National Housing Partnership Foundation and the New York Housing Partnership are both interested in purchasing the complex, joining two other would-be bidders, a coalition of religious and community groups and the National Development Council. Starrett City's owners have not yet officially put the complex on the market, but it is believed that when all's said and done the price tag will be well below the $1.3 billion offered by Clipper Equities last year. Clipper's bid was rejected after activists and politicians protested the deal, saying there was no way the bidder could be willing to shell out so much money and still keep the 5,800-unit property affordable. The nonprofit and grassroots credentials most of the current potential bidders bring with them likely means all or most will pledge to keep Starrett's affordability intact.
List of Starrett City Bidders Grows to Four [Crain's]
Closing Bell: New Starrett City Bids Coming In [Brownstoner]
Starrett photo from forrent.com
March 14, 2008
Fascinating Claim: East New York as the Next Harlem?
Who could've predicted this? Some folks—Marty Markowitz, for one—say notoriously downtrodden and crime-ridden East New York is undergoing a renaissance and could become "the new Harlem." There's been a lot of demand for home ownership options in the area, most notably at the massive condo conversion MeadowWood at Gateway, where prices range from $110,500 to $350,000. "There is no question that the neighborhoods with higher rates of home ownership have the greatest stability, schools and community services," says Markowitz of how ENY is changing. "Brooklynites outside of the ‘Brownstone Belt' don't realize that we have an affordability issue in certain neighborhoods and we're losing families to other areas such as New Jersey. We're committed to not letting that happen." Other developments are also boosting the sprawling neighborhood's profile, including the Related Companies Gateway Center shopping mall, which has a Target, Home Depot, Best Buy, and a supermarket and is going to be expanded in coming years with more big-box retail. Another large ENY home-ownership project, Nehemiah Housing Complex, is also currently being built. The complex will bring more than 2,000 middle-income units to the neighborhoods, with prices starting at $158,000. "Every place has its time," says Fillmore Real Estate's John-Paul Ho, who heads the team selling MeadowWood. "Now it's East New York. It's like a Cinderella story for the entire area."
Is East New York the New Harlem? [NY Daily News]
Photo by zachvs.