Douglaston Development has received construction financing for an upcoming $93.5 million affordable development in the Bronx borough of New York City.
According to a report from Real Estate Weekly, the financing package amounted to $60 million.
Located in the Bedford Park neighborhood, the community will rise near the New York Botanical Garden and will have 188 units for residents earning 50 percent or less of the area median income, as well as a 12,000-square-foot supermarket on the ground floor. Construction is slated to kick off in spring 2021, with planned completion in 2022.
The project represents the first phase of a two-stage, 450-unit affordable development designed by Stephen B. Jacobs Group that will also reshape the adjacent parcel at 410 Bedford Park Blvd. The New York Botanical Garden—the owner of the two parcels—selected Douglaston to handle development efforts. Last year, the New York-based real estate company signed a pair of 99-year ground leases at the location, according to New York Business Journal.
The second phase of the development will encompass 260 rental units, catering to individuals and families with incomes between 30 and 100 percent of AMI.
Financing the Project
Douglaston is partnering with New York State Homes and Community Renewal (HCR), and the New York City Department of Housing Preservation and Development (HPD) on the project.
HCR’s financing of the first stage of development included $32.1 million in tax-exempt bonds, as well as Low-Income Housing Tax Credits that will produce $33.6 million in equity and $6.6 million in subsidy. HPD contributed a $12.8 million subsidy. Wells Fargo is the tax credit syndicator.
Last December, another upcoming affordable community topped out in Hunts Point, BronxTimes reported. The residential building represents the first phase of the $300 million, mixed-use Peninsula development, that will include 740 affordable units in five buildings.