New York, NY. Nixon Peabody served as regulatory counsel to Brooksville Company LLC and Rockpoint Group in its acquisition of Spring Creek Towers from Starrett City Associates L.P. for $904M.
The joint venture by Brooksville and Rockpoint to acquire the Brooklyn, New York–based property, also known as “Starrett City,” required multilayer approvals from state and federal regulators, making it the largest development in the U.S. to generate assistance from the Department of Housing and Urban Development (HUD).
The sale was financed with a $501,471,000 loan from Wells Fargo Bank, National Association, a portion of which is supported by HUD Section 236 interest reduction payments and equity. HUD also provided Section 8 rental subsidy payments for over 3,500 units at the Brooklyn property.
Brooksville and Rockpoint have agreed to extend the Mitchell-Lama affordability protections at the development until 2054, as well as extend the term of the Section 8 subsidy contract until 2049.
Brooksville and Rockpoint will also invest approximately $140M in capital improvements, including an overhaul of the development’s steam turbine power generation facility, which will benefit 15,000 residents across 46 buildings. The project was last refinanced in 2009.
Spring Creek Towers is a 5,881-unit, multifamily rental housing development that is a part the New York State Division of Housing and Community Renewal’s Mitchell-Lama housing program. The property provides housing for middle-income New Yorkers.
Nixon Peabody’s deal team included Affordable Housing partners John Kelly and Aaron Yowell, strategic policy advisor Deborah VanAmerongen and associate Dana Roper.