December 20, 2008 – NEW YORK, NY
Selected to purchase nation’s largest federally assisted apartment complex
The Cogsville Group,LLC, a private equity firm with primary focus on commercial real estate, has outbid Westbrook Partners for Starrett City, a 5,881‐unit rental complex comprised of 46 high‐rise buildings, situated on approximately 140 acres in New York City, NY. The development includes parking garages,a shopping center, a health club, a community center and its own power plant.
The Cogsville Group led a consortium of Prudential Real Estate Investors, the New York City Housing Partnership and the Christian Cultural Center and developed an innovative financial structure.The structure permits the issuance of 501c3 tax- exempt bond financing for the acquisition of the existing housing and retains New York States’s federal housing bond allocation for other projects throughout the state. The structure also permits the acquisition of the land and commercial assets of Starrett City outside the existing housing company enabling The Cogsville Group and its partners to undertake a comprehensive redevelopment of the site.
Mr. Cogsville said: ” We are proud that in addition to preserving affordable housing, our plan envisions a three part strategy to create new middle income housing at Starrett City, create new employment opportunities and provide the community with new services, and create improved public spaces and transportation infrastructure to raise the quality of life for existing and future residents.”
In November 2006, Starrett City Associates, the owner of the complex, announced an offering to sell the property and agreed to sell the complex to Clipper Equity LLC for $1.3 billion in February 2007, Alphonso R. Jackson, the federal housing secretary, blocked the sale. In June 2008, Starrett City Associates reached an agreement with Federal, State and City officials on a memorandum of understanding that preserves 60% of the property as affordable housing under a new 20 year project- based Section 8 contract. The owners opened up bidding for a second time receiving bids from The Cogsville Group, Related Companies, Westbrook Partners and Ggreater Allen Housing Corporation.
About The Cogsville Group LLC
The Cogsville Group LLC is a minority- owned private equity firm founded in 2007 in New York City. The firm’s investment fund, Cogsville Capital Partners Fund I, L.P., makes debt and equity investments in distressed real estate.