Greystone arranges $287M Brooklyn Development
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Around 30 percent of units will be permanently affordable.
The real estate finance company Greystone arranged for $287 million of combined construction financing and preferential equity to be used by Douglaston Development at 1057 Atlantic Ave. in Brooklyn. The mixed-income, 17-story apartment complex will have 456 apartments. 137 of them will be permanently affordable for renters who earn between 60 and 120 percent of Area Median income.
The development will include a mixture of one, two and three bedroom apartments. A landscaped rooftop deck will provide panoramic views of Brooklyn’s skyline and Manhattan. The sustainable features include green roofs with rainwater collection systems, wood composite exterior cladding, and microgrid batteries.
Tax exemption
The project is one of the last large-scale, new rental housing developments that are eligible for a 35-year exemption from real estate taxes under the Affordable New York Housing Program (formerly known as the 421-a), which expired recently. Drew Fletcher of Greystone, Paul Fried and Bryan Grover acted as exclusive advisors to Douglaston Development in arranging financing.
Wells Fargo Bank acted as administrative agent and led the $185 million construction finance. As joint lead arranger, it partnered with M&T Bank.
Bank United was also a participant in the facility. A Ares Real Estate Income Trust Inc. affiliated fund provided a $102,000,000 preferred equity investment for the project. BEB Captial, Totem and Douglaston co-invested and will be co-developer of the $320 million project.
Greystone has provided $40,1 million in Fannie Mae funding for two residential developments in Indianapolis, Ind.
