New Mixed-Use Housing Project to Boost Brooklyn’s Bed-Stuy Neighborhood
- Nov 01, 2010
New York–The effort to revitalize Brooklyn, New York’s, Bedford-Stuyvesant neighborhood takes a step forward with the groundbreaking on The Bradford, a mixed-use, mixed-income apartment property that will produce 105 residences. BRP Companies is the developer for the public-private project, which will cost $45 million to complete.
The blighted site at 1560-1576 Fulton Street will soon become home to The Bradford, which, in addition to 9,700 square feet of ground-level retail, will offer 105 apartments to accommodate budgets of both low- and middle-income households. Twenty-one of the units will be designated for those with annual earnings totaling 30 percent or less of the Area Median Income, while 32 units will be for families earning a maximum of 125 percent of the AMI, and 51 units will be reserved for households with annual earnings not exceeding 130 percent of the AMI. The property, located within close proximity to public transportation, is being designed to qualify for the U.S. Green Building Council’s LEED Silver certification.
Not only will The Bradford serve as a significant part of local officials’ plans for the renaissance of the Bed-Stuy area, it will also take New York City Mayor Michael R. Bloomberg’s $8.4 billion New Housing Marketplace Plan that much closer to its goal of financing the development or rehabilitation of 165,000 affordable housing units in the city by 2014.
Despite the fact that The Bradford will provide much-needed affordable housing and, with its retail segment, help stimulate the local economy, BRP Companies made no assumptions when it came to attracting financing in the presently challenging economic climate. But Goldman Sachs stepped up the plate. The investment banking firm came aboard the project as the sole private investor, serving as equity backer for the $20.7 million in recycled tax-exempt bonds issued by the NYC Housing Development Corporation (HDC) to fund construction. Goldman Sachs also provided $6.8 million from its corporate reserves and $6.5 million in New Markets Tax Credit equity, marking the first occasion in which HDC financing and NMTCs were utilized together.
“The opportunity to bring the financial and intellectual capital of Goldman Sachs to bear on financing The Bradford by putting New Markets Tax Credits to work will benefit many future generations here in Bed-Stuy,” Marc Jahr, HDC president, noted in a prepared statement. “This innovative structure has enabled The Bradford project to move forward, allowing the City to meet the needs of this community, which is creating sustainable homes for our New Yorkers.”
The NYC Department of Housing Preservation and Development also helped get the project off the ground by contributing an aggregate $7.3 million in City Capital funds, HOME funds and Housing Trust funds.
With construction underway, The Bedford is on schedule to open its doors to residents in summer 2012.