A site that once housed an old railroad car barn will be turned into a 210-unit mixed-income, mixed-use development in Brooklyn’s Greenpoint neighborhood.
The team behind the ambitious development announced the financing for the $67 million project, which will involve the remediation of the brownfield site into a LEED-certified community.
1133 Manhattan Avenue is the latest project by The Domain Cos., which has developed a number of notable mixed-income projects throughout New York and New Orleans.
“We believe Greenpoint is among the most exciting areas to invest in New York City today,” said Matt Schwartz, principal of Domain, in a statement. “As a result of the city’s rezoning, inclusionary program, and advancement of the ambitious waterfront plan, first-class affordable housing opportunities for New Yorkers are finally being created in Greenpoint on a significant scale, and the area’s residents will soon have wonderful waterfront amenities to enjoy.”
Financing for 1133 Manhattan Avenue is being provided through several sources, including the New York City Housing Development Corp. (HDC), the city Department of Housing Preservation & Development (HPD), and Goldman Sachs.
Under HDC’s mixed-income program, 20 percent of the units will be available to households earning no more than 50 percent of the area median income (AMI) or $29,050 for an individual; 30 percent of the units will be available to families earning no more than 175 percent of the AMI; and the remaining 50 percent will rent at market rates.
The apartments will range from studios to two-bedroom units. There will also be a resident lounge with a kitchen, a media room, a game room, a fitness center, a rooftop terrace, and a parking garage. A short walk from a new water taxi stop, the development will have more than 8,000 square feet of retail along Manhattan Avenue.
HDC issued $46 million in tax-exempt bonds and provided a $6.8 million second mortgage loan. Goldman Sachs’ Urban Investment Group will serve as the construction lender and provide credit enhancement on the bond debt during construction. Oak Grove Capital provided a commitment for permanent credit enhancement through Freddie Mac. And, Goldman Sachs is also set to provide about $3.3 million in equity from low-income housing tax credits and $4 million in bridge financing during construction.
Officials said 1133 Manhattan Avenue is the first new construction project in the Greenpoint area to take part in HPD’s inclusionary housing program. The development is also expected to apply for benefits through an HPD tax-abatement program.
Built on the former site of a Brooklyn Rapid Transit railroad barn, the project will participate in the state Department of Environmental Conservation’s Brownfield Cleanup Program and will qualify for certain tax credits in connection with site remediation and construction of the new development.
The new community is designed to achieve LEED-Silver certification.
Officials add that the project is part of Mayor Michael R. Bloomberg’s New Housing Marketplace Plan, an initiative to finance 165,000 units of affordable housing for 500,000 New Yorkers by the end of fiscal 2014.
Construction will take approximately two years, with completion anticipated in late 2014.