Brooksville Company LLC and Rockpoint Group LLC announced that they have completed the purchase of Spring Creek Towers—the nation’s largest subsidized affordable housing complex—from its previous owner, Starrett City Associates. Brooksville and Rockpoint and Starrett City Associates entered a contract to transfer ownership in September of 2017, pending final approval from state and federal regulators, which was granted earlier this week.
As a part of the transaction, Brooksville and Rockpoint worked extensively with the State and elected officials to extend affordability protections for all Spring Creek Tower residents, and plan to make substantial improvements to the community’s infrastructure. Brooksville and Rockpoint will extend the current Section 8 protections by 20 years through 2049 and Mitchell Lama protections by 15 years through 2054. They will also invest over $140 million in capital improvements for the community.
“We are honored to become a part of this community,” said Andrew MacArthur, president of Brooksville Company. “We have long believed in the need to protect and preserve affordable housing in New York City and are committed to the long-term health of this community. We have worked closely over the last several months with community leaders, elected officials and regulators to ensure that this transaction fulfills and continues the original vision of Spring Creek Towers and we are grateful for the efforts of all stakeholders to make this transaction possible.”
Keith Gelb, Rockpoint co-founder, said, “Our firm has a long history of investing in New York City, and the acquisition of Spring Creek Towers gives us the opportunity to make a meaningful investment in one of the city’s iconic housing complexes for the benefit of residents and the broader community. We plan to invest in the property’s infrastructure, which residents have indicated should be a top priority, and look forward to working together with Brooksville to make additional upgrades and enhancements as we assume stewardship of this important residential community.”
“The commitment by Brooksville and Rockpoint to invest in the infrastructure of the site, insuring the delivery of essential services for many years to come, and in maintaining the quality of life residents have enjoyed and expect, and, importantly, to extend the affordability, for the 15,000 residents who call Spring Creek Towers home was a major factor in moving ahead with the sale,” said Carol Deane, the general managing partner of Starrett City Associates that built and operated the development for more than 40 years. “We wish the residents and the new owners all success as together they take Spring Creek Towers into the future.”
Spring Creek Towers, formerly called Starrett City, is home to approximately 15,000 residents living in 5,881 apartments in 46 buildings on 153 acres, spanning Pennsylvania Avenue just north of the Belt Parkway. Every apartment is subsidized to maintain affordability, with approximately 60 percent of the units participating in the federal Department of Housing and Urban Development’s Section 8 rental assistance program, and the remaining 40 percent participating in HUD’s Section 236 interest rate reduction and the New York State Division of Housing and Community Renewal’s Mitchell Lama program. The community features a standalone power plant, a 90-person public safety force, a 100,000-square-foot fitness and community facility, 125,000 square feet of community retail space, and over 100 acres of community parks and green space.
Since announcing its intent to purchase the property in September of 2017, Brooksville and Rockpoint have met with the Tenants Association and local elected officials several times to learn more about the property and find opportunities for capital investments to improve residents’ living experience. One of the most immediate concerns expressed was the state of the power plant. Brooksville and Rockpoint have committed to substantial upgrades to the power plant, including the addition of back-up power and an overhaul of the community’s underground piping system.
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