NEW YORK, NY - NYC Housing Development Corporation (HDC), NYC Department of Housing Preservation & Development (HPD), and Goldman Sachs join The Domain Companies to announce financing of 1133 Manhattan Avenue, a mixed-use development in Greenpoint, Brooklyn. The $67 million project involves the remediation of a Brownfield cleanup site and creation of a new Silver LEED for Homes targeted building that combines 210 affordable, moderate-income and market rate apartments with neighborhood retail along Manhattan Avenue. Financing for this project is being provided through the New York City Housing Development Corporation and by Goldman Sachs.
The new construction will be developed under Mayor Michael R. Bloomberg’s New Housing Marketplace Plan (NHMP). The NHMP is a multi-billion dollar initiative to finance 165,000 units of affordable housing for half a million New Yorkers by the close of Fiscal Year 2014. For every dollar invested by the City, the Plan has leveraged $3.42 in additional funding for a total commitment of more than $21 billion to fund the creation or preservation of more than 142,800 units of affordable housing across the five boroughs, with more than 34,800 units financed in Brooklyn.
“1133 Manhattan Avenue will serve as a catalyst in this neighborhood to meet Greenpoint’s growing housing demand,” said Marc Jahr, President of HDC. “The City of New York is committed to creating affordable and sustainable homes for New Yorkers. This silver LEED project will contribute to achieving that goal.”
“We believe Greenpoint is among the most exciting areas to invest in New York City today”, said Matt Schwartz, Principal of the Domain Companies. “As a result of the City’s rezoning, Inclusionary Program and advancement of the ambitious waterfront plan, first-class affordable housing opportunities for New Yorkers are finally being created in Greenpoint on a significant scale, and the area’s residents will soon have wonderful waterfront amenities to enjoy.”
“Often one major challenge in new construction is obtaining unused land. This is why we need committed partners to remediate Brownfield locations and create viable living environments. This is exactly what we are doing with 1133 Manhattan Avenue,” said HPD Commissioner Mathew M. Wambua. “From a disused parcel of land, we will create a bright new home for 210 families. We do this with the help of the New York State Department of Environmental Conservation’s Brownfield Cleanup Program and support from financial partners like HDC, Goldman Sachs and all of our partners. I want to thank you all for your commitment to creating affordable housing in New York City.”
“1133 Manhattan Avenue will create affordable high quality housing and will play an important role in the revitalization of the Greenpoint neighborhood,” said Rachel Diller of Goldman Sachs’ Urban Investment Group. “We are thrilled to provide the financing for this transformative project and to work with our partners at The Domain Companies, HDC, HPD and Freddie Mac.”
Located along Manhattan Avenue between Clay Street and Box Street, the property lies within one of the most rapidly developing areas of Greenpoint. The apartment layouts and finishes and common spaces are designed to position 1133 as the premier apartment community in the area. Apartment sizes will range from studios to two-bedrooms and a number of units will feature spectacular views of Manhattan. The development will feature a resident lounge with a kitchen, media room and game room, fully-equipped fitness center, a large courtyard with an outdoor kitchen, rooftop terrace, on-site management and on-site garage parking. 1133 is located less than two blocks from a recently improved park at the end of Manhattan Avenue and a playground on Clay Street that is currently undergoing enhancements. The property is also a short walk from the new water taxi stop at India Street. 1133 will feature over 8,000 square-feet of retail along Manhattan Avenue that will add to the numerous restaurants and boutiques that have been rapidly opening throughout the area.
“This is an important project for our neighborhood and for the entire City. We have to find ways to rebuild neighborhoods that are affordable, sensitive to the environment and attractive to live in. This project does all that through the use of private equity, government financing and good planning. We are going to clean a Brownfield and create new and affordable housing opportunities. A true win – win.” said Councilman Stephen Levin.
The project is being built on the former site of a Brooklyn Rapid Transit Railroad Car Barn. The project will participate in the New York State Department of Environmental Conservation’s Brownfield Cleanup Program, and will qualify for certain tax credits in connection with site remediation and construction of the new building.
Venetia Lannon, the NYSDEC Regional Director for the New York City area, stated that “DEC is pleased to work with the developer to remediate this contaminated and underutilized property and place it back into productive use”.
The development is designed to achieve LEED Silver Certification, Energy Star Certification and meet Enterprise Green Community Standards. The project is anticipated to demonstrate at least a 15% energy cost savings over conventionally built projects. Innovative ‘green' and sustainable design features include Energy Star rated appliances, high-efficiency HVAC and hot water systems, low-flow plumbing fixtures, low-E windows, fluorescent lighting and the utilization of green building materials for all interior components from carpeting to countertops. The project’s energy-saving features will enable it to qualify for certain incentives through the New York State Energy Research and Development Authority’s Multifamily Performance Program.
Financing for the project was provided through HDC’s Mixed-Income program. Under the program, 20% of the units will be available to households earning no more than 50% of Area Median Income (AMI) or $29,050 for an individual, 30% of the units will be available to families earning no more than 175% of AMI or $101,675 for an individual, and the remaining 50% of the apartments are at market rents. Area Medium Income is calculated by the U.S. Department of Housing and Urban Development (HUD). Income limits for this development are set by the 2012 HUD calculations.
The total development cost is approximately $67 million. HDC issued $46 million in tax-exempt bonds and provided a $6,825,000 second mortgage loan. Goldman Sachs, through its Urban Investment Group, will serve as the construction lender and provide credit enhancement on the tax-exempt bond debt during construction. Oak Grove Capital provided a commitment for permanent credit enhancement through Freddie Mac. Goldman is providing $3,262,000 of equity for the project, which is expected to generate Low Income Housing Tax Credits allocated by HPD. Goldman will also provide $4,000,000 in bridge financing during construction. The project is the first new construction participating in the Inclusionary Housing Program in the Greenpoint area of Brooklyn. The program is administered by HPD. In addition to the Inclusionary Program, the project will apply for benefits thorough HPD’s 421-a tax-abatement program.
1133 will benefit from Domain's one-of-a-kind MyDomain suite of resident services. MyDomain includes a social media-based resident platform and exclusive online community for residents, online rent-payment and maintenance requests, 24-hour service guarantee, full schedule of resident activities, MyDomain Discount Cards, MyDomain Rewards Program and more.
Construction will take approximately two-years, with completion anticipated in late 2014. The City of New York requires that subsidized apartments be rented through an Open Lottery System to ensure fair and equitable distribution of housing to eligible applicants. Marketing of the apartments and the application process for the lottery typically begin when construction is approximately 70 percent complete. The application process for 1133 Manhattan Avenue is not currently open. For more information regarding the lottery process, current housing lotteries, how to apply to an open lottery, and if you would like to receive an e-mail when HPD has updated its website concerning available apartment and home listings for City-subsidized housing in the five boroughs, please visit the Apartment Seekers and Homebuyers pages at www.nyc.gov