Brooklyn, N.Y–CAS Financial Advisory Services (CAS FAS) recently completed the recapitalization and preservation of Starrett City in Brooklyn, N.Y.
The transaction includes new financing of $531 million and significant new financial incentives to the owner in exchange for a commitment to keep the property in Mitchell Lama and other affordable housing programs for an additional 30 years. Todd Trehubenko, CAS FAS president, personally led the
effort and was assisted by Philip Silva and Shannon Lestan.
Starrett City is the largest federally assisted rental property in the U.S. and is home to nearly 15,000 residents. The refinancing is the largest single-property transaction in Freddie Mac’s history.
Starrett City Associates (SCA) retained CAS FAS two years ago after attempts to sell the property were blocked by the government due to concerns about the potential loss of affordable housing. CAS FAS led owner negotiations with the government in efforts to maintaining Starrett City as affordable housing, while also permitting the owners to realize their equity.
Originally pursued as a sale, the transaction was converted to a refinancing following the collapse of the credit markets in the fourth quarter of 2008. Starrett City was developed under a Large Scale Residential Development on a site originally consisting of 140 acres. The property includes 46 high-rise residential apartment buildings, eight parking garages, its own power plant, schools and other community facilities, a commercial shopping center and extensive undeveloped land.