Starrett City Bids Due; Wall Street Crisis May Drive Down Price

starrettcityntang 1 Starrett City Bids Due; Wall Street Crisis May Drive Down PriceToday’s the deadline to bid on Brooklyn’s Starrett City, the nation’s largest federally subsidized housing complex. And, unless a dark horse bolts from the shadows, it looks like there will be only two bidders, both of which have community ties that could assuage the affordability concerns of the Department of Housing and Urban Development.

The two groups, according to media reports, are a partnership of Westbrook Partners, the Metropolitan Council on Jewish Property and the New York City Labor Council, among others; and a partnership of the Clarrett Group, the Christian Cultural Center, Housing Partnership Development Corp. and the Cogsville Group.

HUD is expected to decide on a buyer for the more than 6,000-unit complex in the next few weeks. The department rejected a $1.3 billion bid from David Bistricer last year over concerns that Starrett City wouldn’t remain affordable for tenants.

And guess what? Pre-financial crisis, Starrett City’s sale price was pegged at around $1 billion. Now, according to Commercial Property News, it may go for $600 to $800 million.