The partnership team of BEB Capital, Totem, Ofer Cohen and SK Development have secured financing for a 193,000-square-foot, 14-story, 187-unit mixed-income housing and retail development in Sunset Park, Brooklyn. Canyon Partners Real Estate LLC and J.P. Morgan co-originated the $96 million construction financing. Tribeca Investment Group arranged the $25 million investment. Walker & Dunlop secured the financing on behalf of the ownership team.
Upon completion, 737 Fourth Avenue will deliver 187 residential units, comprised of a mix of one-bedroom, two-bedroom and three-bedroom residences. A total of 46 units will be permanently affordable at an average of 48% of area median income (AMI), one of the lowest AMI averages achieved in the last five years in Brooklyn.
Beyond new housing, the development includes a Community Benefits Agreement (CBA) signed with area community-based organizations including Fifth Avenue Committee (FAC). This agreement will ensure lasting benefits for the neighborhood, such as local jobs, M/WBE contracting, and green infrastructure improvements.
In addition, 737 Fourth Ave. will include 6,200 square feet of ground-floor retail space, with an executed lease to former tenant Dunkin Donuts for 1,275 square feet. The building will feature amenity spaces including a fitness center, game and media lounge, co-working lounge, private dining and entertainment areas, tenant storage and a roof garden with sweeping views of Brooklyn and New York Harbor.
“We’re thrilled to be partnering with Totem and SK Development to deliver Brooklyn’s latest multifamily project,” said Lee Brodsky, CEO of BEB Capital. “737 Fourth Ave. presents a blend of state-of-the-art, mixed-income residences, retail offerings and infrastructure benefits to the Sunset Park community and beyond.”
The complex will participate in the 421-a program known as Affordable New York and will benefit from a 35-year tax abatement. The development is located in an Opportunity Zone within Brooklyn’s “enhanced affordability area,” allowing the ownership team to leverage the maximum abatement and enable the most affordable units to be created.
“This project is a reflection of our commitment to community-driven development, and we are proud of our work with local organizations to help secure a myriad of benefits for the neighborhood during the entitlement process,” said Vivian Liao, principal of Totem. “We have specifically designed 737 Fourth Ave. to increase affordable housing at one of the lowest AMI averages in years and to create jobs and infrastructure benefits for Sunset Park.”
Construction on the approximately $143 million project is slated for completion in Fall 2025.
The Walker & Dunlop New York Capital Markets team led by Aaron Appel, Jonathan Schwartz, Adam Schwartz, Keith Kurland and Michael Ianno acted as the exclusive advisor and secured the financing on behalf of the ownership team.
