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Judge Denies Injunction to Stop Sale of Starrett City

The lawsuit continues but the $905 million sale of the largest federally subsidized housing complex in the country can proceed to the next step.

By Betsy Kim | Updated on January 04, 2018
Starrett housing Starrett City, the largest federally subsidized housing complex in the US

New York City—New York Supreme Court Judge Saliann Scarpulla on Tuesday issued a decision denying dissident shareholders’ motion to block the sale of Starrett City, the largest federally subsidized multifamily development in the US. The property, also referred to as Spring Creek Towers, comprises 46 buildings and 5,581 apartments on 153 acres in Brooklyn.

A contract had been signed by the buyer, a joint venture between Brooksville Company LLC and Rockpoint Fund Acquisitions, L.L.C.

The plaintiffs opposing the sale include the stepchildren of defendant Carol Deane, who is the managing partner of Starrett City Associates, as well as two corporations: San Francisco, CA-based Belveron LLC, and Portland, ME-based Lower Income Housing Corporation. The corporations own a 12% interest in Starrett City and had previously attempted to outbid Brooksville and Rockpoint.

The original lawsuit filed on Sept. 28 claimed the sale price was not high enough. It alleged the processes through which Carol marketed the property, selected buyers and obtained Starrett City partnership consent to the sale were flawed. The complaint asserted that relevant information was not disclosed.

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