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3w ago

Developers Secure $217 Million Construction Loan for Alafia Phase 3 in East New York

The financing unlocks state tax-credit equity plus tax-exempt bonds to move a major phase of a 27-acre redevelopment toward delivery of affordable homes and public green space.

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Upon full completion, Alafia will have approximately 2,600 units of affordable housing and 50,000 square feet of commercial and community facility space, including the new One Brooklyn Health medical facility and a senior center, as well as more than 20,000 square feet of open and urban agriculture space and several thousand square feet of retail space.

Overview

  • Apex Building Group and L+M Development Partners obtained $217 million in construction financing for Phase 3, backed by a lending consortium led by Redstone Bank with participation from Goldman Sachs Urban Investment Group and support from NYSERDA.
  • New York State Homes and Community Renewal is expected to supply roughly $97 million in equity via the federal Low-Income Housing Tax Credit program while the state LIHTC is projected to add about $14 million in equity and $57 million in tax-exempt bonds to fill remaining financing gaps.
  • Phase 3 will consist of two six-story buildings with 273 affordable apartments, engineered to high-efficiency standards and anchored by about one acre of public green space with a mile-long fitness loop and play areas.
  • Developer and state officials say Phase 3 is on track for completion in 2029 and is one piece of a larger master plan that aims to convert the 27-acre former Brooklyn Developmental Center into roughly 2,600 affordable homes plus community and commercial facilities.
  • The project is intended to expand deeply subsidized housing and community services in East New York, a neighborhood with a higher poverty rate than the city overall, and is expected to include retail, a medical and senior facility, and sustainable infrastructure that benefit local residents.