Starrett City Brooklyn

Development

In 1962, a California-based investment group acquired 130 acres (53 ha) of land along Pennsylvania Avenue between Flatlands Avenue and the Belt Parkway with plans to build apartments. The Thompson–Starrett Co. was chosen to construct the buildings.

In March 1964, the investment group sought a $145 million mortgage from the New York State Housing Finance Agency for the development, then referred to as part of Canarsie. On December 1, 1964, the State Housing Finance Agency announced the Park Shore Village project, which aimed to construct a middle-income apartment complex on the site.

Park Shore Village was envisioned to include 19 buildings standing 11, 17, and 21 stories tall, along with a 40-acre (16 ha) shopping center, community center, swimming pools, skating rinks, a new elementary school (PS 346), and parking for residents. Funds would be provided through loans under the Mitchell-Lama Housing Program. The project would be built in two phases, ultimately accommodating 25,000 people. Approval was granted by the New York City Planning Commission on January 20, 1965, and by the New York City Board of Estimate on February 11, 1965. Construction on the first phase was slated to begin in the spring of that year and be completed by 1967, with the second phase to follow. However, due to financial issues, the original investment group withdrew, halting the project.

On June 27, 1967, Governor Nelson Rockefeller announced a modified version of the project known as Twin Pines Village. This cooperative housing development was planned for the 145-acre (59 ha) site, still considered part of Canarsie. It was sponsored by the United Housing Foundation (UHF), which was also involved in developing Co-op City.

Opening and early years

The complex was officially dedicated on October 13, 1974, in a ceremony attended by Governor Malcolm Wilson and Mayor Abraham Beame. To enhance accessibility, a minibus service was introduced to transport local residents within the development and to shopping centers in other parts of Brooklyn. Additionally, the BM2 express bus service to Manhattan was extended from Canarsie to Starrett City. Interestingly, at the time of the opening, none of the proposed 18,000 trees for the complex had been planted. While lower-income families didn’t receive subsidies to reside in Starrett City, residents could utilize state and federal housing programs to offset part of their rent. The initial 300 families were scheduled to move in that November.

In January 1975, community leaders and officials suggested rerouting five bus routes and creating two new ones to better serve the complex. In December of the same year, Pennsylvania Avenue was reopened to traffic, leading to protests by residents who previously used the street for recreational purposes. By 1976, two thousand families had already moved into Starrett City. In July 1978, a swimming and tennis club on Van Siclen Avenue was inaugurated, requiring families to pay $250 per year for usage. The club was accompanied by a recreation center at the same location, open to the public. During the same month, Starrett City welcomed its five thousandth resident, with the complex being 85 percent rented at that time. By 1981, Starrett City’s presence was credited with stimulating the development of six other projects in the neighborhood, including a shopping mall and five housing developments.

Sale offerings

On November 30, 2006, Starrett City Associates made an announcement regarding the offering of the entire property for sale. As the property had fulfilled its 20-year obligation under Mitchell-Lama regulations by the late 1990s, this move sparked concerns that a new owner might escalate rents and displace existing tenants. CB Richard Ellis, the same firm that brokered the Stuyvesant Town–Peter Cooper Village deal earlier in 2006, served as the listing agent.

Upon learning about the sale, Starrett City tenants mobilized in response to the potential sale of their homes. On February 8, 2007, Starrett City Associates agreed to sell the expansive complex to David Bistricer’s Clipper Equity LLC for $1.3 billion. Despite Clipper Equity’s assurances that the complex would remain affordable, housing advocates and politicians voiced apprehensions regarding the intentions of Clipper Equity.

In light of the U.S. Department of Housing and Urban Development’s (HUD) rejection of the initial deal, Clipper Equity proposed a new bid. This revised bid included plans to reduce operating expenses and to redevelop a portion of the land for new housing purposes.

In September 2017, The New York Times reported that the complex was being sold to the Brooksville Company and Rockpoint Group for $850 million. At that time, Donald Trump owned a 4 percent share, with other members of his family owning an additional 16 percent. However, disputes arose between two groups associated with Disque Deane, who had passed away in 2010, leaving his estate to his third wife, Carol G. Deane, and their two children. Carol, who managed Starrett City Associates after Disque’s death, became embroiled in a legal battle with a collective that included four of Disque’s children, one of his former partners, and LIHC Investment Group and Belveron Partners, who also expressed interest in purchasing the complex. The two groups filed lawsuits against each other in New York Supreme Court, alleging that Carol’s sale of Starrett City to Brooksville and Rockpoint did not maximize profits for shareholders. The lawsuit was eventually dismissed, and the sale of Starrett City was finalized on May 8, 2018, for $905 million.

In August 2021, a group of anonymous investors sold a 71 percent stake in the complex to Brooksville and Rockpoint for $1.8 billion. The following month, Brooksville and Rockpoint obtained full ownership of the complex after acquiring Belveron Partners’ 13 percent stake.