Public/Private Financing Unveiled for Brooklyn Apartment Project
New York—1133 Manhattan Avenue, a mixed-use development by the Domain Cos. in Greenpoint, Brooklyn, is a step closer to realization with financing through the New York City Housing Development Corp. (HDC) and by Goldman Sachs. The $67 million project involves the remediation of a brownfield site and creation of a new Silver LEED for Homes building that combines 210 affordable, moderate-income, and market rate apartments with neighborhood retail along Manhattan Ave.
Financing for the project was provided through HDC’s Mixed-Income program. Under the program, 20 percent of the units will be available to households earning no more than 50 percent of area median income, or $29,050 for an individual, while 30 percent of the units will be available to families earning no more than 175 percent of AMI or $101,675 for an individual. The balance of the units will be at market rate.
HDC issued $46 million in tax-exempt bonds and provided a $6.825 million second mortgage loan. Goldman Sachs, through its Urban Investment Group, will serve as the construction lender and provide credit enhancement on the tax-exempt bond debt during construction. Also, Goldman is providing $3.262 million of equity for the project, which is expected to generate Low Income Housing Tax Credits allocated by HPD, as well as $4 million in bridge financing during construction.
The project is the first new construction participating in the Inclusionary Housing Program in the Greenpoint area of Brooklyn, which is administered by HPD. In addition to the Inclusionary Program, the project will apply for benefits thorough HPD’s 421-a tax-abatement program.
Apartment sizes will range from studios to two-bedroom units, and a number of units will feature views of Manhattan. The development will include a residents’ lounge with a kitchen, media room and game room, fitness center, a large courtyard with an outdoor kitchen, on-site management and on-site garage parking. 1133 is located less than two blocks from a recently improved park at the end of Manhattan Ave. and a playground on Clay St. that is currently undergoing enhancements.
The development will not only be LEED Silver, but also receive Energy Star Certification and meet Enterprise Green Community Standards. Its green features include Energy Star rated appliances, high-efficiency HVAC and hot water systems, low-flow plumbing fixtures, low-E windows, and the use of green building materials. The project’s energy-saving features will enable it to qualify for incentives through the New York State Energy Research and Development Authority’s Multifamily Performance Program.Tags: Financing, mixed-use, New Development