NEW YORK CITY — Alloy Development and The Vistria Group have obtained $535 million in construction financing for One Third Avenue, a 62-story mixed-use tower that marks the second and final phase of the Alloy Block development in downtown Brooklyn. Rising 730 feet, the project will include 583 market-rate and affordable housing units along with retail and office space.
Vistria will invest more than $120 million of equity to capitalize the development, and Kayne Anderson Real Estate is providing $375 million of debt. Chris Peck, Nicco Lupo and Peter Rotchford of JLL managed the capital raise.
One Third Avenue marks the tallest Passive House building in the world, according to the developers. Passive House is a building standard for dramatically reducing energy use while improving indoor air quality. Elements of the Passive House design include an airtight, well-insulated building envelope, filtered fresh air and a low carbon footprint. The development’s residential and office spaces will share energy resources to minimize waste heat.
One Third Avenue joins the two projects in the first phase of Alloy Block — 505 State Street, a 44-story, 441-unit apartment tower and New York City’s first all-electric skyscraper, and 489 State Street, the first two public schools designed to meet Passive House standards. All units at 505 State Street utilize electricity as opposed to natural gas, eliminating carbon emissions across the building. The schools include the Elizabeth Jennings School for Bold Explorers and the Khalil Gibran International Academy.
Of the total unit count at One Third Avenue, 153 units will be designated as affordable housing, with rents starting at $1,023 per month. Apartments will be located at the top of the building from floors 11 to 60.
The tower’s podium will consist of six floors and 60,000 square feet of office space. The project also includes the adaptive reuse of two historic buildings from the 1800s on State and Schermerhorn streets, along with a new building on Third Avenue that will provide 30,000 square feet of retail space.
Once complete, the Alloy Block will be home to 1,000 residences, including approximately 200 affordable housing units.
Alloy is a development and architectural firm based in Brooklyn.
Vistria is a private investment firm that invests in industries such as housing, healthcare, knowledge and learning solutions and financial services. The Chicago-based company maintains $17 billion in assets under management.
— Kristin Harlow