Greystone Arranges $287 Million Financing Package for Douglaston Development’s 456-Unit Mixed-Income Rental Development in Brooklyn, NY

02 June 2023

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.”