Four Groups Bid For Starrett City

The bids are coming in for Starrett City; even from companies that were shut out by HUD.

By: John Noble Four groups have submitted bids to acquire Starrett City on Thursday. Two of the bidders decided to go ahead and place their bids, even after being rejected for consideration by HUD. On Tuesday, HUD sent rejection letters to two of the prospective bidders, which indicates that the HUD doesn't think that the bidders have the financial or managerial means to carry out an effective operation of the Starrett City development. NHP Foundation, along with Greater Allen Development Corp, both were rejected as bidders in the Starrett City offering. All of the bidders, however, have been working with partners including JP Morgan Chase for months in attempts to put together a cohesive offer. Ghebre Selassie Mehreteab, chief executive of the NHP foundation, has said that he was upset with receiving the rejection letter so close to the 3 p.m. deadline on Thursday. “We vehemently disagree with their assessment, and we have already written appealing their decision,” he said. A HUD spokesman said that there is not a formal appeals process and that the rejections are a “preliminary assessment.” He said the sellers will ultimately decide whether they want to consider bids from the rejected groups or not. Starrett City Associates has said that it needs time to look at the bids and assess their value. Details of the bids will be available next week, at the earliest.