Alloy Development and The Vistria Group have successfully secured $535 million in construction financing for One Third Avenue, a groundbreaking 62-story mixed-use tower in downtown Brooklyn. This marks the final phase of the Alloy Block development, set to redefine the city skyline with its innovative design and purpose. The tower, reaching a height of 730 feet, will comprise 583 residential units, a mix of market-rate and affordable housing, alongside retail and office spaces, promising a vibrant and sustainable urban living experience.
In a strategic move, Vistria is injecting over $120 million of equity into the project, demonstrating a strong commitment to the development’s success. The financing package also includes a substantial $375 million debt component provided by Kayne Anderson Real Estate. The capital raise was expertly managed by JLL’s Chris Peck, Nicco Lupo, and Peter Rotchford, showcasing a collaborative effort to bring this visionary project to fruition.
One Third Avenue is set to become the world’s tallest Passive House building, a notable achievement in sustainable architecture that emphasizes energy efficiency and superior indoor air quality. Key features of the Passive House design include a meticulously sealed and well-insulated building envelope, advanced ventilation systems for filtered fresh air, and a significantly reduced carbon footprint. Moreover, the integration of shared energy resources between residential and office spaces will optimize energy usage and minimize waste heat, setting a new standard for environmentally conscious urban developments.
The Alloy Block development encompasses the essence of innovation and sustainability, with the first phase already showcasing pioneering initiatives. 505 State Street, a 44-story residential tower, stands as New York City’s inaugural all-electric skyscraper, eliminating carbon emissions by exclusively utilizing electricity instead of natural gas. Additionally, 489 State Street hosts the city’s first two public schools designed to meet Passive House standards, emphasizing a commitment to providing a healthy and eco-friendly learning environment for students.
Of the total residential units in One Third Avenue, 153 will be allocated for affordable housing, offering a vital solution to the city’s pressing housing needs. With rents starting at $1,023 per month, these units aim to promote inclusivity and diversity within the development. The tower’s unique configuration places the affordable housing units on the upper floors, from levels 11 to 60, ensuring equitable access to premium living spaces with panoramic views of the city.
Beyond its residential components, One Third Avenue will feature a six-story podium housing 60,000 square feet of office space, catering to the evolving needs of the modern workforce. The project also incorporates the adaptive reuse of two historic 19th-century buildings on State and Schermerhorn streets, alongside a new retail building on Third Avenue offering 30,000 square feet of commercial space. This blend of heritage preservation and contemporary design reflects a harmonious integration of the old and new, enriching the urban fabric of downtown Brooklyn.
As Alloy and Vistria drive forward with this transformative development, the Alloy Block is poised to become a vibrant urban hub, accommodating a total of 1,000 residences, including approximately 200 units of affordable housing. With a focus on sustainability, innovation, and community impact, One Third Avenue symbolizes a new chapter in urban development, setting a benchmark for future projects to aspire to.
- The successful funding of One Third Avenue underscores the growing importance of sustainable and innovative design in urban developments.
- Alloy and Vistria’s commitment to affordable housing reflects a dedication to fostering inclusive communities within premium real estate projects.
- The integration of Passive House principles in high-rise construction sets a new standard for energy-efficient buildings in urban environments.
- The Alloy Block’s combination of historic preservation, modern design, and sustainability initiatives showcases a holistic approach to urban development, blending heritage with innovation.
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