NEW YORK CITY—Greenland Forest City Partners, the joint venture of Forest City Ratner Cos. and Greenland USA developing the Pacific Park Brooklyn project, has closed on financing for the construction of 38 Sixth Ave., a 303-unit, 100% affordable apartment building at the complex.
The NYC Housing Development Corp. is providing an $83 million first mortgage construction loan for the building through the issuance of tax-exempt government debt obligations funded by Citi Community Capital. Greenland also is receiving a $10 million subordinate loan from HDC and a $2 million subordinate loan from Citibank to erect the building.
Following the close of funding, construction of 38 Sixth Ave. has begun. Formerly known as B3, the tower is the third building that Greenland Forest City Partners has broken ground on since December 2014 at Pacific Park Brooklyn, including 535 Carlton, a 100% affordable apartment building, and 550 Vanderbilt, a market-rate condominium building.
“This closing reflects the strength of our partnership with Greenland USA,” says David J. LaRue, president and chief executive officer of Forest City. “38 Sixth Avenue represents our continued commitment to deliver high-quality affordable housing at one of the country's most vibrant mixed-use communities in Pacific Park Brooklyn.”
Adds MaryAnne Gilmartin, president and chief executive officer of Forest City Ratner Cos., “We couldn't be happier with the progress we are making to achieve our commitment to affordable housing as an integral part of Pacific Park Brooklyn. We all know that the need for this housing is critical and we are very proud to be working with the state and the city to bring this housing to market.”
“We're very excited that Greenland Forest City Partners is moving aggressively to fulfill its commitment to a fast-tracked timeline for the delivery of affordable housing,” asserts ESD President, CEO, and commissioner Howard Zemsky. “The project is on track to complete construction 10 years earlier than originally predicted and with the construction of 38 Sixth Ave, they'll have made good on their commitment to start construction on two 100-percent affordable buildings by June 30.”
The first building at Pacific Park, 461 Dean St.(formerly known as B2 BKLYN), broke ground at the end of 2012 and will include 50% market-rate apartments, 30% middle-income and 20% low-income units. 461 Dean Street is being developed by Forest City separately from the joint venture.
Construction on the second residential building, 535 Carlton, began in December 2014. It will be 100% affordable, with 50% of the units being middle-income, 20% moderate and 30% low-income units. Construction of 550 Vanderbilt, which sits on the northwest corner of Vanderbilt Avenue and Dean Street and is a market-rate condominium building, also began last December.
The groundbreaking at 38 Sixth Ave. brings the total number of affordable apartments under construction at the development to 780 units, with the project slated to eventually include 2,250 affordable units out of 6,430 total units.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
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.
