Douglaston Development has acquired a 46,000-square-foot development site located at 1057 Atlantic Ave., and closed financing for a 474,000-square-foot, 17-story, 456-unit mixed-income multifamily rental development, which will be one of the last new housing developments eligible for a long-term tax exemption under the recently expired Affordable New York Housing Program.
Wells Fargo Bank led the $185 million construction financing as Administrative Agent and partnered with M&T Bank as Joint Lead Arranger, with BankUnited also participating in the facility. Funds managed by Ares Real Estate acquired a preferred interest in the project. BEB Capital and Totem co-invested in the project with Douglaston and will serve as co-developer on the $320 million development. The Greystone Capital Advisors team, led by Drew Fletcher and Paul Fried, was retained by Douglaston to serve as exclusive advisor in arranging the full capital stack for the project.
Upon completion, 1057 Atlantic Ave. will deliver 456 residential units to the community living at the intersection of Bedford-Stuyvesant, Crown Heights and Clinton Hill. The development will include a mix of one-bedroom, two-bedroom and three-bedroom residences. A total of 137 units will be permanently affordable, approximately two thirds of which will be dedicated to those earning an average of 60% of the area median income (AMI). In addition to the residential portion of the project, 1057 Atlantic Ave. will include 31,000 square feet of ground-floor retail space as well as 35,000 square feet of resident amenity spaces, featuring a gym, lounge, golf simulator, game room, screening room, children’s playroom and landscaped roof deck.
“At a time when New York City is in vital need of more affordable housing options and expanded market-rate supply, we’re excited to bring another best-in-class housing option to residents of Bed-Stuy and the larger Brooklyn community,” said Jeffrey Levine, chairman of Douglaston Development. “We are looking forward to expanding upon both our previous work within the borough and our deep relationships with Greystone, Wells Fargo, M&T, BankUnited and Ares.”
Douglaston acquired the site for $66 million from the partnership led by BEB Capital and Totem, which assembled the site between 2019 and 2020, successfully obtained a rezoning to allow for residential use, and commenced foundation work in May 2022. As co-developers, the BEB Capital and Totem teams have co-invested in the project alongside Douglaston and will play a role as the project moves through its next phases.
Construction is slated for completion in late 2025.
