NEW YORK CITY-The city’s first affordable residential project tobe financed via the federal New Market Tax Credits program willbring 105 rental units to the Bedford-Stuyvesant section ofBrooklyn, Goldman Sachs and BRP Development announced Tuesday. The$45-million development, to be known as the Bradford and which willalso include ground-floor retail space, will be built as part ofthe Bloomberg administration’s New Housing Marketplace Plan.

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Through its Urban Investment Group, Goldman worked with thecity’s Housing Development Corp. and Department of HousingPreservation and Development to line up construction financing.Goldman is the sole private investor in the project, providing $6.5million in NMTC equity in addition to serving as equity backer forHDC’s $20.7-million issue of recycled tax-exempt bonds.

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Additionally, HDC provided $6.8 million in subsidy from itscorporate reserves. HPD provided $4.38 million in City Capitalfunds, $1.9 million in HOME funds and $1 million in HTF funds. TheNMTC allocation was provided by Waveland Community Development andCarver Federal Savings Bank.

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The not-for-profit and development partners are theBedford-Stuyvesant Restoration Corporation and BRP, aminority-owned development firm of multifamily housing throughoutNew York City and Philadelphia. Construction is scheduled forcompletion in the summer of 2012. To date, BRP has about $150million of mixed-use properties completed or under development.

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In a statement, HDC president Marc Jahr says, “In thischallenging economy our ability to raise capital that leveragesprivate sector investment is more important than ever. The factthat we can do this with ease in this market speaks to the power ofthe resources we can bring to bear, the strength inherent in thiscity and our vibrant communities and the commitment of financialinstitutions like Goldman Sachs to the city’s future.”

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Founded in 2000, Goldman’s UIG invests in communityredevelopment projects. In May, UIG took a minority interest inMcCormack Baron Salazar, an affordable housing developer based inSt. Louis.

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.