New York-based manager Douglaston Development this week obtained $287 million of construction financing from a Wells Fargo Bank-led syndicate and a fund managed by Ares Real Estate Income Trust for 1057 Atlantic Avenue, a planned 474,000-square-foot, 456-unit mixed-income property in Brooklyn. Greystone arranged the financing.
San Francisco-based Wells Fargo Bank has originated a $187 million construction loan for the 17-story property, acting as administrative agent. The syndicate included Buffalo-based M&T Bank as joint lead arranger, with Miami Lakes, Florida-based Bank United also participating in the facility. The Ares-managed fund provided $102 million of preferred equity.
The capital stack for the planned $320 million development included Port Washington, New York-based BEB Capital and Brooklyn-based Totem co-investing with Douglaston. Greystone Capital Advisors’ Drew Fletcher, Paul Fried, and Bryan Grover arranged the financing on behalf of Douglaston Development.
The project is notable both for its size and its scarcity, market participants told Real Estate Capital USA. The planned development is one of the last large-scale new rental housing developments eligible to receive a 35-year real estate tax exemption under the recently expired Affordable New York Housing Program.
The property is slated for completion in late 2025 and will include a mix of one- to three-bedroom residences. A total of 137 units will be permanently affordable and will be earmarked for people with earnings of 60 percent to 120 percent of the area median income. The property will include 31,000 square feet of ground-floor retail space and other amenities.