Greystone Arranges $287M for Brooklyn Development

1057 Atlantic Ave in Brooklyn, N.Y.

Real estate finance company Greystone has arranged $287 million in combined construction financing and preferred equity for Douglaston Development’s 1057 Atlantic Ave., which will be situated at the intersection of Bedford-Stuyvesant, Crown Heights and Clinton Hill in Brooklyn, N.Y. The 17-story, 474,000-square-foot mixed-income apartment community will feature 456 units—137 of which will be permanently affordable to renters at 60 to 120 percent of Area Median Income— and 31,000 square feet of ground-floor retail. .

The development will feature a mix of one-, two- and three-bedroom apartments. Some 35,000 square feet of amenity space will be highlighted by a landscaped roof deck delivering panoramic views of Brooklyn and the Manhattan skyline. Sustainable features are to include multiple green roofs, rainwater collection, wood-composite exterior cladding and energy-efficient microgrid battery technology.

Tax exemption

The project is among the final large-scale new rental housing developments qualified to garner a 35-year real estate tax exemption under the Affordable New York Housing Program, formerly known as 421-a, which recently expired. Greystone’s Drew Fletcher, Paul Fried and Bryan Grover served as exclusive advisors in arranging the financing on behalf of Douglaston Development.

Wells Fargo Bank served as administrative agent, leading the $185 million construction financing. It partnered with M&T Bank as joint lead arranger.

Bank United also participated in the facility. Funds managed by an Ares Real Estate Income Trust Inc. affiliate furnished a $102 million preferred equity investment in the project. BEB Capital and Totem co-invested in the project with Douglaston and will serve as co-developer on the $320 million development.

Last month, Greystone provided $40.1 million in Fannie Mae financing for a pair of Indianapolis, Ind., developments totaling 408 residential units.