The $77-million redevelopment is just a few blocks from thefamed Coney Island Boardwalk. Last year, the city formed the ConeyIsland Development Corp. to create a plan to diversify the area andtransform it into a year-round locale. Last month, the city sold a25,900-sf lot that will be combined with two adjacent ones tobecome a Staples. The redevelopment also builds upon other recenteconomic initiatives such as the construction of the Keyspan Parkminor league baseball stadium and the renovation of the boardwalkand Stillwell Avenue subway terminal.

Woodmere-based Arker and Related Capital will act asco-developers on the revitalization with Related and its affiliate,PW Funding Inc., providing the debt and equity financing. Arker,which has a concentration of affordable-housing developments inHarlem and East New York, will also serve as general contractor.Sea Park, originally constructed between 1973 and 1974, was part ofthe Mitchell-Lama program created by the state in the mid-50s as ameans of providing affordable rental and cooperative housing tomoderate- and middle-income families.

"Coney Island is experiencing a dramatic renaissance butaffordable housing has not kept pace," says Patrick Martin,managing director of Related Capital. "This redevelopment will playa critical role in revitalizing the area." Arker principal AllanArker adds, "Coney Island is densely populated, and the strongdemand for housing coupled with a limited supply has led to fewvacancies and high costs."