Sources: Starrett City Ruling Thins Buyer Pool

BROOKLYN, NY-A memorandum of understanding between government officials and the owners of Spring Creek Towers here earlier this week to sustain affordable housing in the 153-acre mixed-use development, better known as Starrett City, could lessen potential suitors for the asset, sources say. Nevertheless, owner Starrett City Associates expects to have the project under contract by Sept. 1, Jay Neveloff, an attorney and partner at Kramer Levin Naftalis & Frankel representing the owner, tells GlobeSt.com.

A $1.3-billion bid last year by Clipper Equities was blocked by the Federal Department of Housing and Urban Development, after it said the acquisition would jeopardize affordability of the 5,800-plus apartments on the site.

When asked if he expects a similarly priced bid after the memorandum, Neveloff says, “my expectation, is there will be some change, but we’ll see. That’s what the free market is.”