What's Happening?
Alloy Development and the Vistria Group have secured $535 million in financing for the construction of One Third Avenue, a 730-foot mixed-use project in Downtown Brooklyn. This development will include 583 apartments, retail, and office space, and is part of the Alloy Block, a five-building complex. The project aims to deliver affordable housing and redefine sustainable urban living. Vistria is investing over $120 million in equity, while Kayne Anderson Real Estate is providing $375 million in debt financing. The building will feature 153 affordable apartments with rents starting at $1,023 a month, and will include office space elevated 100 feet above street level. The facade will meet Passive House standards, promoting energy efficiency and a healthy indoor environment.
Why It's Important?
The financing of One Third Avenue marks a significant step in sustainable urban development, emphasizing the importance of affordable housing and energy-efficient building practices. This project is expected to set a new standard for Passive House-certified buildings, potentially influencing future developments in urban areas. The inclusion of affordable housing units addresses the growing demand for accessible living spaces in New York City, while the focus on sustainability aligns with broader environmental goals. The development could serve as a model for integrating residential, commercial, and public spaces in a way that benefits communities and reduces carbon footprints.
What's Next?
Construction is expected to begin this fall, following demolition work earlier this year. The completion of One Third Avenue will surpass Vancouver's Earth Tower as the tallest Passive House-certified building globally. The project is anticipated to enhance the Alloy Block's reputation for high-quality design and environmental standards. As the second phase of the Alloy Block, this development will continue to raise the bar for sustainable urban living, potentially influencing other developers to adopt similar practices.
