NYCHA Secures $185M for Redevelopment of Brooklyn Community
It's the first closing for the city's Housing Preservation Trust.
The New York City Housing Authority has secured a $185 million loan for the acquisition and rehabilitation of Nostrand Houses, a 1,148-unit multifamily property in Brooklyn’s Sheepshead Bay neighborhood. Merchants Capital sourced the note, contributing $135 million through Merchants Bank its commercial banking subsidiary. AFL-CIO Housing Investment Trust provided the remaining $50 million.
The transaction marks the first financial closing for the New York Public Housing Preservation Trust. Additionally, Nostrand Houses is the first property to be rehabilitated through the Trust’s Modernization & Preservation program, which is targeting a total of 25,000 units.
Nostrand Houses and Brooklyn’s sprouting projects
Construction for the redevelopment of Nostrand Houses began last month, with completion slated for 2031. The project is divided into six phases, targeting renovations of both individual apartments and building-wide systems. The owners plan to upgrade the cooling and security infrastructure, install new kitchens, bathrooms and elevators, as well as improve the community’s accessibility.
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Developed by the New York Public Housing Preservation Trust in two phases between 1949 and 1951, Nostrand Houses consists of 16 six-story buildings across a 26-acre site. Currently, the property features residences with studio, one-, two- and three-bedroom layouts ranging from 483 to 1,208 square feet, according to Yardi Matrix information. Upon redevelopment, any vacant units will be available to eligible households through the Project-Based Section 8 program.
Located at 2241 Batchelder St., Nostrand Houses is in proximity to Marine Park and Kings Plaza Shopping Center, 6 miles south of downtown Brooklyn. The community is surrounded by more than 65 multifamily properties on a 3-mile radius, amounting to upwards of 11,300 units, the same source shows. Within the same area, there are a 12 multifamily construction projects in different stages of development. Two of those developments are across the street from Nostrand Houses, at 2185 Coyle St. and 3033 Avenue V. The will total 489 future residences.
