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Back then, developers had little financial incentive to build rentals, which provide profits at a snail's pace compared with condos.
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We tend to build rental buildings and then sell them.
Additional capital will come from the Grant family, through the sale of property to developers seeking to build rental buildings.
Mr. Wolkoff said he plans to build rental housing, an entertainment center, and a business center with office buildings and light manufacturing on the site.
He chose to build rental apartments rather than condominiums.
"Over those decades nobody would come into Boston, Brookline or Cambridge to build rental housing," he said.
The decisions of Mr. Domansky, Mr. Pintchik and others to build rental apartments, rather than condos, suggest that Flatbush Avenue is not considered a prestigious residential address.
But it plans to build rental units instead in its Obey Creek project, a proposed 124-acre, mixed-use neighborhood in Chapel Hill, said Roger Perry, the firm's president.
In towns with snob zoning where affordable housing was targeted by the law, there is no way to build rental housing without the carrot of the law".
Officials close to the negotiations said the city had already bought two parcels next to the market, as part of a plan to build rental housing.
It led to a federal program to encourage private developers to build rental apartments for the poor in the Housing and Urban Development Act of 1965.
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