NEW YORK CITY-The city’s first affordable residential project to be financed via the federal New Market Tax Credits program will bring 105 rental units to the Bedford-Stuyvesant section of Brooklyn, Goldman Sachs and BRP Development announced Tuesday. The $45-million development, to be known as the Bradford and which will also include ground-floor retail space, will be built as part of the Bloomberg administration’s New Housing Marketplace Plan.
Through its Urban Investment Group, Goldman worked with the city’s Housing Development Corp. and Department of Housing Preservation and Development to line up construction financing. Goldman is the sole private investor in the project, providing $6.5 million in NMTC equity in addition to serving as equity backer for HDC’s $20.7-million issue of recycled tax-exempt bonds.
Additionally, HDC provided $6.8 million in subsidy from its corporate reserves. HPD provided $4.38 million in City Capital funds, $1.9 million in HOME funds and $1 million in HTF funds. The NMTC allocation was provided by Waveland Community Development and Carver Federal Savings Bank.
The not-for-profit and development partners are the Bedford-Stuyvesant Restoration Corporation and BRP, a minority-owned development firm of multifamily housing throughout New York City and Philadelphia. Construction is scheduled for completion in the summer of 2012. To date, BRP has about $150 million of mixed-use properties completed or under development.
In a statement, HDC president Marc Jahr says, “In this challenging economy our ability to raise capital that leverages private sector investment is more important than ever. The fact that we can do this with ease in this market speaks to the power of the resources we can bring to bear, the strength inherent in this city and our vibrant communities and the commitment of financial institutions like Goldman Sachs to the city’s future.”
Founded in 2000, Goldman’s UIG invests in community redevelopment projects. In May, UIG took a minority interest in McCormack Baron Salazar, an affordable housing developer based in St. 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.
