NEW YORK CITY-The NYC Housing Development Corp. and Goldman Sachs—together with the Domain Cos.—have announced in a release the financing of 1133 Manhattan Ave., a mixed-use development in Greenpoint, Brooklyn. The $67-million project involves the rehabilitation of a Brownfield cleanup site and creation of a new LEED Silver for Homes targeted building featuring 210 affordable, moderate-income and market rate apartments with retail stores along Manhattan Avenue.
The new construction will be done under Mayor Michael R. Bloomberg's New Housing Marketplace Plan, a multi-billion dollar initiative to finance 165,000 units of affordable housing for half a million New Yorkers by the end of FY2014. For every dollar invested by the city, the plan has leveraged $3.42 in additional funding, providing a total commitment of more than $21 billion to fund the creation or preservation of more than 142,800 units of affordable housing across the five boroughs, according to the release.
“We believe Greenpoint is among the most exciting areas to invest in New York City today,” says Matt Schwartz, principal of the Domain Cos., in a release. “As a result of the city's rezoning, Inclusionary Program and advancement of the ambitious waterfront plan, first-class affordable housing opportunities are finally being created in Greenpoint on a significant scale.”
Located along Manhattan Avenue, between Clay and Box streets, the property lies within one of the most rapidly developing areas of Greenpoint, the announcement states. Apartment sizes will range from studios to two-bedrooms and the development will feature a resident lounge with a kitchen, media room and game room, fully-equipped fitness center, a large courtyard with an outdoor kitchen, rooftop terrace, on-site management and on-site garage parking. 1133 will feature over 8,000 square-feet of retail along Manhattan Avenue.
The project is being built on the former site of a Brooklyn Rapid Transit Railroad car barn. It will participate in the New York State Department of Environmental Conservation's Brownfield Cleanup Program, and is expected to qualify for some tax credits in connection with site remediation and construction of the new building.
Financing for the project was provided through HDC's Mixed-Income program. Under the program, 20% of the units will be available to households earning no more than 50% of Area Median Income, or $29,050 for an individual; 30% of the units will be available to families earning no more than 175% of AMI or $101,675 for an individual; and the remaining 50% of the apartments are at market rents.
To cover the development cost, HDC issued $46 million in tax-exempt bonds and provided a $6,825,000 second mortgage loan. Goldman Sachs, through its Urban Investment Group, will serve as the construction lender and provide credit enhancement on the tax-exempt bond debt during construction. Oak Grove Capital provided a commitment for permanent credit enhancement through Freddie Mac.
Goldman is providing $3,262,000 of equity for the project, which is expected to generate Low Income Housing Tax Credits allocated by HPD. Goldman also will provide $4 million in bridge financing during construction. The project is the first new construction participating in the Inclusionary Housing Program in the Greenpoint area of Brooklyn. In addition to the Inclusionary Program, the project will apply for benefits thorough HPD's 421-a tax-abatement program.
Construction will take approximately two years, with completion anticipated in late 2014.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
