Phipps Houses Lands $217M Loan for Affordable Brooklyn Community
- Jun 29, 2021
Phipps Houses is set to break ground on the first phase of its 1,100-unit affordable housing community in Brooklyn, N.Y.’s East New York neighborhood after landing $217 million in construction financing.
The financing from the New York City Department of Housing Preservation and Development, the New York City Housing Development Corp.’s ELLA program and Wells Fargo will go towards building Atlantic Chestnut I, the first portion of Phipps Houses’ three-phase project.
The developer tapped Monadnock Construction to build the first phase, which will start construction in July for an expected completion in the fall of 2023. Phipps Houses also previously worked with Monadnock Construction when developing the first phase of affordable housing project Hunter’s Point South in Queens.
Nearly half of the 403-unit Atlantic Chestnut I will be two- and three-bedroom apartments, while 41 percent of the units will be one-bedrooms and approximately 10 percent will be studios. The apartments will only be eligible for those making between 40 and 80 percent of the area’s median income, with 15 percent of the units being reserved for formerly homeless.
The Dattner Architects-designed community will also include 21,352 square feet of commercial and community space, which includes space where locals will receive preferential rents. The project’s amenities will also include a courtyard, rooftop deck and on-site support services with a local provider for residents and the neighborhood.
Located at 250 Euclid Ave., Atlantic Chestnut I’s residents will be down the street from the Crescent Street subway station that offers access to the J and Z lines. The community will also be located near City Line Park, which underwent a $5.2 million renovation in 2019.
FROM FACTORY TO AFFORDABLE HOUSING
Atlantic Chestnut I will be followed by two other affordable housing developments that combine for a total of 1,100 units, 60,000 square feet of commercial and community facility space, and parking for 200 cars.
The site for the Atlantic Chestnut development was previously a long-abandoned factory that was destroyed by a fire in July 2014. The site was left contaminated due to its former industrial use but qualified for the state’s Brownfield Cleanup Program that was meant to incentivize private companies to clean up and redevelop these sites.
The three-building project is also expected to be the largest development within the East New York Neighborhood Plan. The rezoning was approved in April 2016 and was aimed at promoting affordable housing, economic development, pedestrian-friendly streets among other neighborhood benefits. Since its approval, the zone has attracted several projects of varying scopes including residential projects, community centers and infrastructure upgrades.