BROOKLYN, NY – May 31, 2023 – Douglaston Development today announced the firm has acquired a 46,000 square foot development site located at 1057 Atlantic Avenue, and closed financing for a 474,000-square-foot, 17-story, 456-unit mixed-income multifamily rental development, which will be one of the last new housing developments eligible for a long-term tax exemption under the recently expired Affordable New York Housing Program. Wells Fargo Bank led the $185 million construction financing as Administrative Agent and partnered with M&T Bank as Joint Lead Arranger, with BankUnited also participating in the facility. Funds managed by Ares Real Estate acquired a preferred interest in the project. BEB Capital and Totem co-invested in the project with Douglaston and will serve as co-developer on the $320 million development. The Greystone Capital Advisors team, led by Drew Fletcher and Paul Fried, was retained by Douglaston to serve as exclusive advisor in arranging the full capital stack for the project.
Upon completion, 1057 Atlantic Avenue will deliver 456 residential units to the community living at the intersection of three vibrant neighborhoods: Bedford-Stuyvesant, Crown Heights, and Clinton Hill. The development will include a mix of one-bedroom, two-bedroom and three-bedroom residences. A total of 137 units will be permanently affordable, approximately two thirds of which will be dedicated to those earning an average of 60% of the area median income (AMI). In addition to the residential portion of the project, 1057 Atlantic Avenue will include 31,000 square feet of ground-floor retail space as well as 35,000 square feet of state-of-the-art resident amenity spaces, featuring a gym, lounge, golf simulator, game room, screening room, children’s playroom, and landscaped roof deck offering sweeping views of Brooklyn and the Manhattan skyline.
“At a time when New York City is in vital need of more affordable housing options and expanded market-rate supply, we’re excited to bring another best-in-class housing option to residents of Bed-Stuy and the larger Brooklyn community,” said Jeffrey Levine, Chairman of Douglaston Development. “We are looking forward to expanding upon both our previous work within the borough and our deep relationships with Greystone, Wells Fargo, M&T, BankUnited, and Ares. We are especially thankful to our lending partners for their support and confidence in light of an exceptionally challenging financing market.”
“Ares is excited to continue to grow our relationship with Douglaston and provide financing to construct much-needed rental housing – including 137 affordable units – in New York City,” saidAndrew Holm, Partner and Co-Head of U.S. Investments in Ares Real Estate. “This investment reflects both our conviction in multifamily housing and our commitment to providing greater access to quality housing.”
Douglaston acquired the site for $66 million from the partnership led by BEB Capital and Totem, which assembled the site between 2019 and 2020, successfully obtained a rezoning to allow for residential use, and commenced foundation work in May 2022. As co-developers, the BEB Capital and Totem teams have co-invested in the project alongside Douglaston and will play a role as the project moves through its next phases.
“This partnership is the culmination of more than two years of collaboration with Totem, Ofer Cohen of TerraCRG and BEB Capital.” said Jed Resnick, Chief Executive Officer of Douglaston Development. “Their dedication to growth in Brooklyn, excellence in design, and community engagement has earned the respect of the entire Douglaston team.”
“We’re excited to work with Douglaston Development, a first-class developer, on this market-changing multifamily project that will have a tremendous impact on the Bedford-Stuyvesant community,” said Lee Brodsky, CEO of BEB Capital. “We look forward to serving as co-developers, along with Totem, and helping to realize a truly dynamic and state-of-the-art mixed-use development.”
“This project is a reflection of our commitment to community-driven development, and we are proud of our work with local organizations, like Bedford Stuyvesant Restoration Corporation and St. Nicks Alliance, to help secure a myriad of benefits for the neighborhood during the entitlement process, including increasing affordable housing and launching a first-of-its-kind community impact fund,” said Tucker Reed, Principal of Totem. “We are proud to now partner with Douglaston on the next phase of development.”
Construction on the approximately $320 million project has commenced and is slated for completion in late 2025.
About Douglaston Development
Douglaston Development is a New York City-based real estate developmentcompany, specializing in a wide range of projects from mixed-use developments, high-rise mixed-income rentals and market-rate condominiums, hospitality, senior communities and commercial spaces. Working in close collaboration with its affiliated construction and management companies, Levine Builders and Clinton Management, Douglaston Development has the advantage of being one of the few owner-builder-managers in the industry with expertise in successful acquisition, ground-up and rehabilitation construction and management of properties post-development. Over the past 40 years, the company has expanded its portfolio to include properties located in New York, Arizona, and Washington.
For more information, please visit: www.douglastondevelopment.com.
About BEB Capital
BEB Capital is a real estate development and investment firm with a portfolio of industrial, office and multifamily properties across the Northeastern United States. In addition, the firm has interests in a diverse set of businesses, some of which it owns and operates, and others in which it serves as a limited partner. In 2020, the company launched BEB Lending, a platform that provides private, quick and creative financing solutions for commercial real estate assets in primary and secondary assets across the East Coast of the United States. The firm’s institutional-grade operation and entrepreneurial spirit has allowed the firm to create value by completing several million square feet of value-add industrial acquisitions, multifamily conversions and redevelopments.
About Totem
Totem is a Brooklyn-based real estate development firm that specializes in community-driven projects and innovative design. We build intentional, inclusive developments focused on affordability, economic mobility, innovative partnerships, and regenerative design. Our approach utilizes our team’s deep experience in public policy and private sector solutions to bring about outcomes that expand opportunity in the communities where we work. For more information, please visit: https://www.totembrooklyn.com/.
About Ares Management Corporation
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, private equity, real estate and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of March 31, 2023, Ares Management Corporation’s global platform had approximately $360 billion of assets under management with more than 2,600 employees operating across North America, Europe, Asia Pacific and the Middle East. For more information, please visit www.aresmgmt.com.
About Greystone
Greystone is a national commercial real estate lending, investment and advisory company with an established reputation as a leader in multifamily and healthcare finance. Its range of services includes commercial lending across a variety of platforms such as Fannie Mae, Freddie Mac, CMBS, FHA, USDA, bridge, and mezzanine. Loans are offered through Greystone Servicing Company LLC, Greystone Funding Company LLC, and/or other Greystone affiliates. Greystone Capital Advisors is a full-service real estate capital intermediary and advisory team that services a select group of the most prominent real estate owners and developers across the U.S. For more information, visitwww.greyco.com.
