Refi Deal in the Works for Starrett City

NEW YORK CITY-A deal is in the works to refinance Starrett City that would allow the 5,881-unit Brooklyn apartment complex to remain affordable, the New York Times reported. The complex’s owners, Starrett City Associates, are working with the city, state and federal housing departments on the agreement. They took the complex off the market earlier this year after a series of deals fell through in recent years.

In the deal, Starrett City Associates would refinance the complex for roughly $500 million, or 80% of its value, thus paying off the $234.4-million interest-free mortgage and other fees, and make a profit estimated at $200 million. The owners would also set aside more than $40 million for work on the facades of the 46 towers in the complex and for capital projects, the Times reported. Since the money would come from the refinancing, the capital work would not lead to rent increases and would allow the complex to remain in the Mitchell-Lama affordable housing program for 30 more years.