Alloy Development is advancing to the next stage of its mixed-use development, thanks to closing on $535 million in capital. The financing will support the construction of One Third Avenue, the second phase of Alloy Block in Downtown Brooklyn.
Kayne Anderson Real Estate is providing $375 million worth of debt, while the other $120 million comes courtesy of an investment from private equity firm, The Vistria Group.
According to Alloy, One Third stands to become the "tallest passive house building in the world." The 730-foot structure is set to deliver 153 affordable apartments, 60,000 square feet of office space and 30,000 square feet of retail space. The apartments, starting at $1,023 per month, will be located on floors 11 through 60.
Also, two buildings on Schermerhorn Street and 1800s on State Street will be a part of the One Third phase. The affordable apartments with the office space will be featured in the 730-foot tower, sitting behind the other two buildings.
“One Third Ave represents exactly the type of transformative development our Real Estate strategy was designed to support: delivering meaningful affordable housing while redefining sustainable urban living and forging public-private partnerships that achieve better outcomes for communities than either sector could deliver alone,” Margaret Anadu, The Vistria Group’s head of real estate, said in a statement.
The first phase, known as 505 State Street, was known as NYC's "first all-electric skyscraper" that provided 441 apartments, workspace, along with retail space and amenities such as a gym, a yoga studio, a children's play area and bike parking. In total, the 505 State offers 44 stories.
Once Alloy Block fully delivers, the goal is to deliver more than 1,000 residences (200 affordable), two passive house public schools, 30,000 square feet of retail and 60,000 square feet of Class A office. Also, Alloy Development vows that the entire project will be Brooklyn's "most sustainable block."
One Third is far from the only standout project in NYC this year. This spring, Charney Companies and Tavros Capital secured $174.5 million for what would be the largest building in all of Gowanus, in Brooklyn. The mixed-use development calls for roughly one million square feet of space, with 1,000 residential units, ranging from studios to three-bedroom apartments. Then there's Midtown South and the Jamaica Neighborhood Plan, which have been advancing through the city's approval process. Both initiatives could bring nearly 22,000 new homes to NYC.
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