NEW YORK CITY—Two Trees Management reportedly has approached the state about a $180 million loan for the first building at its big Domino Sugar Factory site project in the Williamsburg section of Brooklyn, according to the Real Deal.
Known as Site E—and located at 352 Kent Ave.—the first tower is an 80/20 rental building and has been estimated to have a nearly $300 million price tag. The loan, which has been requested of the state's Housing Finance Agency, would be backed by tax exempt bonds under affordable housing rules, In all, the building will include 104 affordable housing units—with rents as low as $575 per month—as Two Trees previously pledged to the city, and will feature a total of 522 units.
The mortgage loan, which has a term of 35 years, including a three-year construction period, will be backed mostly by the NYC Housing Development Corp., which will sell the bonds to M&T Bank, the Real Deal reveals. The building's cost figure includes the price of land along with construction costs.
State housing officials project that by 2029, 325 Kent will have a net operating income of $18 million, with almost $5 million of cash left after servicing the debt. The building has had its share of controversy.
In early 2014 Mayor Bill de Blasio demanded more affordable units at the complex and Two Trees initially resisted but ultimately agreed to the city's demands. Jed Walentas of Two Trees, announced in March that the company was breaking ground on 352 Kent Ave.
When complete, the entire complex will feature about 2,300 apartments and approximately 500,000 square feet of commercial space.
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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.
