NEW YORK CITY — Wells Fargo and Freddie Mac have secured $531.48 million for the refinancing of Starrett City, a 5,881-unit affordable housing community located in Brooklyn, New York City, that also goes by the name Spring Creek Towers. The property consists of 46 building situated on 140 acres. In addition to providing low-income housing to more than 12,000 residents, Starrett City also contains several schools, community centers, parks, parking garages, the Brooklyn Sports Club and an on-site power plant.
Wells Fargo originated the loan on behalf of the borrower and owner of Starrett City, Starrett City Associates. Freddie Mac has committed to purchasing the loan. The transaction will help maintain the property, originally developed in the 1970s as a Mitchell-Lama affordable rental community, as an affordable housing option for the next 30 years. More than $40 million of the loan proceeds have been set aside for capital improvements.
“We would not have reached this important milestone in Starrett City's three-decade history without the help of state and federal government officials, both elected and appointed, who share an unerring dedication to serving the best interests of the citizens of New York,” said Robert Poll, president of Starrett City Associates, in a statement. “This refinancing is a wonderful example of what can be achieved when government agencies and the private sector work together constructively to achieve common goals.
“The refinancing is a winning situation for the thousands of families who call Starrett City home,” said Mike May, senior vice president of multifamily for Freddie Mac, in a statement. “It puts to rest current residents' fears that the property would be sold, rents would increase and they would be forced to find alternative housing. We are proud of how all parties worked together to help ensure that the property remains affordable.”
— Coleman Wood