Greystone, a leading national commercial real estate finance company, announced it has arranged $287 million in combined construction financing and preferred equity for Douglaston Development’s 1057 Atlantic Avenue, a 474,000-square-foot, 17-story, 456-unit mixed-income multifamily rental development in Brooklyn’s Bedford-Stuyvesant neighborhood. Notably, the project will also be 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 (formerly known as 421-a). Greystone Capital Advisors’ Drew Fletcher, Paul Fried, and Bryan Grover served as exclusive advisors in arranging the financing on behalf of Douglaston Development.

Wells Fargo Bank led the $185 million construction financing as Administrative Agent, partnering with M&T Bank as Joint Lead Arranger and Bank United also participating in the facility. Funds managed by an affiliate of Ares Real Estate Income Trust, Inc. provided a $102 million preferred equity investment 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.

Upon completion in late 2025, 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, available to those earning 60% to 120% 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.

“Long-term clients such as Douglaston rely on us for our deep capital relationships and ability to execute on complex financing assignments even in the most challenging lending environments,” said Drew Fletcher, President of Greystone Capital Advisors. “With the increasing complexities of New York’s housing landscape, along with the rapidly changing capital markets, it is our mission to work tirelessly in order to find a solution that fits our clients’ needs.”

Mixed-Use Project to Bring 234 New Affordable Housing Units to NYC Market

Greystone, a leading commercial real estate lending, investment, and advisory firm, today announced that it has arranged equity and debt for Douglaston Development’s 931-unit luxury mixed-use residential development at 601 W. 29^th Street on Manhattan’s Far Wide Side. Spanning the full block-front on 11^th Avenue between 29^th and 30^th Streets, the Project site is located at the crossroads of two of Manhattan’s most dynamic and rapidly transforming neighborhoods – West Chelsea and Hudson Yards.  An affiliate of Ares Management LLC, a U.S.-based publicly traded alternative asset manager, has committed to invest joint-venture equity into the Project, and a syndicate of banks led by HSBC, with co-lenders Bank of China and Landesbank Hessen-Thüringen (“Helaba”), provided a $415 million construction loan. Santander Bank and Raymond James Bank also participated in the loan facility.

Greystone’s Structured Finance Group, led by President Drew Fletcher, was tapped to serve as exclusive advisor on behalf of Douglaston and Ares in arranging the full capital stack for the Project. Paul Fried, Executive Managing Director and Head of Equity Capital Markets for Greystone’s debt and equity advisory platform, led the effort to raise the joint-venture equity, with support from Vice President Matthew Hirsch and Associate Bryan Grover, who also contributed to the debt raise.  Ken Lore from Katten Muchin Rosenman LLP and Shapiro & Gellert PLLC served as transaction counsel for the joint-venture.

Designed by FXCollaborative, the vision for the Project brings together distinctive architecture and efficient units with a world-class suite of lifestyle-oriented amenities. The 50,000 square foot amenity package includes an expansive fitness center, multiple outdoor terraces, and a pool. The Project will consist of 931 residential units, 697 market rate units and 234 units reserved for residents earning an average of 60% of Area Median Income (AMI). The Project also includes 186 parking spaces and 15,000 square feet of Class-A retail.  Demolition and site work are already underway, and the Project is expected to open in 2023.

“The Douglaston team did an incredible job assembling the site and creating what will undoubtedly become one of New York City’s signature multifamily developments. We are extremely proud to have represented both Douglaston and Ares on this market-leading transaction,” said Mr. Fletcher. 

“The combination of elite sponsorship, great basis, and an unparalleled location adjacent to Hudson Yards creates a truly one-of-a-kind opportunity for an institutional investor like Ares,” said Mr. Fried.

Marked by its early entry into the Far West Side in 2010 with its 369-unit residential property, Ohm, Douglaston was one of the first developers to recognize the potential for the area to become a premier residential neighborhood in Manhattan. Over a nearly five-year period, Douglaston painstakingly assembled and rezoned the Ohm’s large, underutilized Project site and structured a 99-year ground lease to create one of New York City’s most exciting residential development opportunities, located directly on the High Line and steps away from Hudson Yards.

Douglaston’s Chairman Jeffrey Levine and President Steven Charno in a joint statement said: “Douglaston is thrilled to kick-off our new partnership with Ares on this ground-breaking development.  We are equally proud to deepen our relationship with Greystone. Drew and his team demonstrated incredible commitment working alongside us for nearly four years as we rezoned the site. Their professionalism, market knowledge and credibility with capital providers enabled us to achieve a financing structure that exceeded our expectations and created significant value for the Project.”