BROOKLYN, NY-Starrett City Associates, the owners of the 34-year-old Starrett City complex, have reportedly picked four groups to submit final bids for the 140-acre housing complex here. The complex, which includes nearly 5,900 apartments in 46 brick towers, is expected to be sold in mid-September at a price of $800 to $900 million.

Eight bidders submitted offers earlier this month. According to published reports, the four finalists include: the NHP Foundation, a nonprofit housing developer, in partnership with the Related Cos.; the Rev. Floyd H. Flake’s Greater Allen Cathedral Housing Corp., along with JPMorgan Chase; the Housing Partnership Development Corp., the Cogsville Group, the Clarett Group, the Christian Cultural Center and Aimco; and the Metropolitan Council on Jewish Poverty, the New York City Central Labor Council, Westbrook Partners, Phipps Houses, Provident Resources and possibly Touro College, which is interested in building a school at Starrett City.

Last year, elected officials and tenant groups blocked the $1.3-billion bid of Starrett City to private developer, Clipper Equities, as previously reported. Since then, the owners reached an agreement with officials to ensure the complex remains affordable.

Hugh Finnegan, an attorney in the real estate group at Sullivan & Worcester LLP, tells that “the bidders had to be a combination of private real estate companies and not-for-profit agencies. The public relations disaster of the previous deal necessitated this result.” previously reported that the memorandum of understanding between government officials and the owners of Starrett City here earlier this week, to sustain affordable housing in the development, could lessen potential suitors for the asset. Jay Neveloff, an attorney and partner at Kramer Levin Naftalis & Frankel representing the owner, told, that likely bidders could include joint ventures between a group with an affordable-housing focus and another entity interested in its commercial space, including a 142,000-sf shopping center and vast tracts of developable land. “What you’ll see is a more focused group of buyers,” he said.

As previously predicted by Finnegan, the price this time around will most likely be lower than before “because of the limit of upside and because of the credit crunch, thus requiring more equity than under the original deal,” he says. “It is unlikely that any offer will match the Clipper [Equities] price.”

A spokesman for Recap Advisers, which is handling the sale, confirmed to that there are four bidders, but he could not disclose their identities or further information at this time. Related Cos. tells that it is “not commenting on Starrett.” Metropolitan Council on Jewish Poverty tells that “we confirm our bid on Starrett City.” The Rev. Floyd Flake’s Great Allen A.M.E. Cathedral of New York, and Christian Cultural Center were unable to be reached by deadline. The Cogsville Group, the Clarrett Group, the Housing Partnership Development Corp., Westbrook Partners, the NHP Foundation, Phipps Houses, and J.P. Morgan Chase did not return queries by deadline.

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