A partnership of Gilbane Development, Blue Sea Development, Artspace Projects, as well as the City and State of New York, has completed the financing of Brownsville Arts Center & Apartments, a $254 million affordable housing project set to comprise 283 units in Brooklyn, N.Y.
The income-restricted project’s capital stack combined several subsidies, totaling nearly $100 million. These included $88.1 million provided by the New York City Housing Development Corp. and the New York City Department of Housing Preservation and Development, as well as $8.2 million issued by the New York City Department of Cultural Affairs, in addition to a total of $3 million in RESO A funding provided by two New York City Council members.
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Additional financial partners consisted of the New York State Energy Research and Development Authority, as well as the Empire State Development Corp. TD Bank originated a construction loan, while Raymond James provided Brownfield Tax credit equity and handled the LIHTC syndication.
Building a sustainable affordable project
Construction is set to kick off this month, while completion is slated for December 2027. A subsidiary of Gilbane is the general contractor of the project designed by Aufgang Architects.
Brownsville Arts Center & Apartments will encompass studio, one- to three-bedroom apartments reserved for future residents earning 30 to 70 percent of the area median income, including apartments catering to formerly homeless individuals. The community will also include a 28,000-square-foot cultural arts center with 3,440 square feet of studio space.
Through sustainable building practices, the all-electric project will be developed in accordance with Passive House Institute 2021 CORE standards and will also aim to achieve a LEED Platinum certification, as well as other environmental accreditations.
The development will rise on a vacant city-owned lot at 366 Rockaway Ave., about 5 miles from downtown Brooklyn. The Broadway Junction subway and the East New York train stations are within walking distance.
Brooklyn’s affordable pipeline
More than 20 percent of Brooklyn’s under-construction units were within fully affordable projects as of July, according to Yardi Matrix data. The borough had approximately 4,620 income-restricted apartments underway and another roughly 9,400 such units in the planning and permitting stages.
Debt keeps flowing toward affordable projects in Brooklyn. Just last month, BFC Partners secured a $250 million construction loan for the third and final phase of a larger development. Upon completion in 2028, this third stage will bring online 420 units.
The borough’s affordable pipeline could grow even further as the New York City Council approved a rezoning in May that paved the way for 4,600 new multifamily units, including 1,900 income-restricted apartments.
The post Gilbane JV Lands Financing for $254M Affordable Brooklyn Project appeared first on Multi-Housing News.
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