Bronx Project Moves Forward With $343M Phase 2
Completion of the 1,000-unit development is set for 2028.
The public-private joint venture of BRP Cos., Hudson Cos., ELH-TKC, Breaking Ground, J.P. Morgan, Comunilife and New York City has kicked off construction on the second and final phase of La Central, a mixed-income development in the Bronx, N.Y., set to comprise more than 1,000 units. The $343 million Phase 2 will deliver 420 affordable apartments upon completion in 2028.
The development team also includes MHG Architects, FXCollaborative, Dagher Engineering, Denardis Engineering, Bright Power and Future Green Studio, as well as Skycore Builders and Broadway Builders.
Upon delivery, Phase 2 will comprise 114 units catering to residents earning at or below 30 percent of the area median income, 106 apartments reserved for households earning up to 50 percent of AMI, as well as 198 units restricted for individuals earning no more than 80 percent of AMI. Additionally, 63 supportive housing units are set to shelter formerly homeless New Yorkers. This phase will be developed in accordance with green building practices.
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Two towers, dubbed Building C and Building E, will house the new apartments. Rising 13 and 26 stories at 625 and 671 Brook Ave., the duo will bring the development’s building count to five upon their completion. Floorplans call for studio and one- to four-bedroom layouts.
Phase 2 will also include 13,000 square feet of community space, 1,500 square feet of retail space and 7,000 square feet of garden space, as well as a courtyard with a playground. La Central Building C will be built to passive house standards, while Building E will feature a rooftop-mounted telescope operated by the Bronx High School of Science.
La Central’s other buildings came online starting six years ago. Building D debuted in 2019, while La Central A and B opened two years later. The latter two also include a YMCA facility and a production studio for BronxNet.
The development occupies three city blocks in South Bronx, about 2 miles from Interstate 87. St. Mary’s Park, as well as several transit stops including a subway station, are within walking distance.
Financing a Bronx affordable project
Financial partners included the New York City Department of Housing Preservation and Development, which provided $137 million in subsidies, the New York City Housing Development Corp., which issued tax-exempt bonds, as well as New York City Councilmember Rafael Salamanca, who provided Reso A funding.
Additional funds consisted of LIHTC equity issued by J.P. Morgan and syndicated by Red Stone Equity Partners, Brownfield Tax Credits, as well as New York State Energy Research and Development Authority grants.
Affordable housing in New York City
The current New York administration has earmarked $24.7 billion for housing capital in the current 10-year plan. That includes the $2 billion allocated toward the HPD and the New York City Housing Authority as part of the $112.4 billion Fiscal Year 2025 Adopted Budget, as well as the $5 billion City of Yes proposal that aims to build 80,000 units across the next 15 years.
However, local funds aren’t the sole financing source for affordable housing. A 30-year Freddie Mac permanent loan of $221.7 million went toward the rehabilitation of Eastchester Gardens, the second-oldest public housing property in the Bronx, encompassing 877 units. Merchants Capital facilitated the debt sourcing on behalf of NYCHA.
