Starrett sale war

Suit over ‘below-market’ $850M deal

Owners of Starrett City are trying to offload the massive Brooklyn housing complex — in which President Trump has a small stake — for less than fairmarket value in a deal “riven with conflicts of interest,” according to investors suing to stop the $850 million sale.

The plaintiffs are the heirs of late real-estate investor Disque D. Deane, one of Starrett’s first investors, and Starrett City Af- fordable LP LLC, owned by San Francisco-based investment firm Belveron Partners. Together they own a 15.4 percent limited partnership in the nearly 6,000unit complex.

They accuse the owners, Starrett City Associates, of being driven by conflicts of interest and refusing to turn over information about the “below-market” sale.

The owners “determined this past summer to pursue an expedited sale through what they euphemistically called a ‘targeted and customized marketing pro- cess,’ directed by a conflicted broker, and entertained only a single offer,” alleges the lawsuit, filed Thursday in Manhattan Supreme Court.

Because of this, owners “refused to solicit bids from any other buyers and ignored the superior offer of a ready, willing and able alternative,” the suit said.

Starrett City, which overlooks Jamaica Bay, is the largest federally subsidized housing complex in the nation.

The sprawling complex is expected to be sold to a joint venture including real-estate firm Brooksville Co. and private- equity firm Rockpoint Group, The New York Times reported this month.

Trump owns a 4 percent stake in Starrett City and members of his family own stakes in the partnership, according to the Times.

The president stands to make about $14 million from a sale — which requires approval from the US Department of Housing and Urban Development.

A Starrett City Associates rep declined to comment.