NEW YORK CITY — A joint venture between nonprofit Breaking Ground Housing Development Fund Corp. and New York City-based Douglaston Development has finalized plans for the first phase of Sparrow Square, a $1 billion affordable housing development project in the Brooklyn borough of New York City.
The $242 million phase will comprise two 10-story residential buildings. Totaling 262 units of affordable housing, the buildings will feature 117 units designated as supportive housing. Amenities at the property will include a fully equipped gym, bike storage and private terraces. Supportive services will also be available onsite.
Additionally, Phase I will features an 8,000-square-foot community facility for the Brooklyn Ballet, which will support arts programming and community engagement. Project work will also include the addition of a new private drive (dubbed Sparrow Way) to integrate the residential buildings and community facility into the surrounding street grid.
Each building in Phase I will be designed to Passive House standards and offer all-electric utilities. The development will also feature electric vehicle charging, sustainable stormwater management practices, solar panels and green roofing.
Financing for Phase I includes state tax-exempt bonds, a subsidy from New York State’s (NYS) Supportive Housing Opportunity Program and 4 percent low-income housing tax credits (LIHTC). Additional funding is being provided by Homeless Housing & Assistance Corp. and the New York State Office of Mental Health.
The Urban Investment Group at Goldman Sachs Alternatives is serving as the project’s investor and has provided nearly $240 million in financing that comprises LIHTC equity and a letter of credit. Goldman Sachs also secured programmatic funding through the NYS Empire State Supportive Housing Initiative for the supportive units.
Work is currently underway, with Levine Builders — the general contractor affiliate of Douglaston Development — leading construction. Completion is scheduled for the first quarter of 2029.
Upon full build-out, Sparrow Square, part of the $1.4 billion Vital Brooklyn Initiative, will deliver roughly 1,000 units of affordable and supportive housing for individuals, families and seniors, as well as green spaces, a community garden, dedicated community program spaces and opportunities for affordable homeownership.
The redevelopment of the former Kingsboro Psychiatric Center will span 7.2 acres. In addition to Douglaston Development and Breaking Ground Housing Development Fund Corp., the consortium of development partners includes Almat Urban LLC, Jobe Development Corp., the Velez Organization and Brooklyn Community Service.
— Hayden Spiess