Alloy Development (Alloy), in partnership with the New York City Educational Construction Fund (ECF), today announced that it has closed on $240 million in financing for the first phase of the Alloy Block (formerly known as 80 Flatbush).
Construction is expected to begin in the coming weeks on New York City’s first all-electric residential tower, along with the city’s first two public schools designed to meet Passive House compliance, the highest standards of energy efficiency and indoor air quality.
The schools include a state-of-the-art Khalil Gibran International Academy (KGIA) high school and a public elementary school.
Goldman Sachs, Related Companies, and funds managed by the Real Estate Group of Ares Management provided a $240 million financing package for Alloy.
That financing was brokered by Christopher Peck, David Giancola, Peter Rotchford and Jeffrey Julien of JLL. Additionally, ECF floated $152 million of bonds to Barclays to fund the construction of the two schools on the block. Construction of the first phase of the Alloy Block is expected to be finished in 2024.
“We are committed to making Brooklyn beautiful, sustainable and equitable and as the city recovers from the pandemic, we hope the Alloy Block will set the standard for progressive, thoughtful development,” said Jared Della Valle, CEO and Founder of Alloy.
“When it comes to taking the environmental impact of buildings seriously, building truly affordable housing in wealthy, transit-rich neighborhoods, and creating healthier school environments, we are proud to play a leading role as we begin construction on the Alloy Block. Our sincere thanks to our partner, the Educational Construction Fund, and to Goldman Sachs, Related and Ares for their belief in the project and its values.”
“Sustainable, inclusive residences are the future of New York City, and we are proud to invest in the Alloy Block’s all-electric, mixed-income, mixed-use tower that will become the new model for environmentally-conscious urban living,” said Alfred Trivilino, Managing Director, Related Fund Management.
“This investment represents a unique opportunity to support the construction of a Class A residential tower in a thriving neighborhood, while creating New York City’s first Passive House-compliant public schools and new residential units under the Affordable New York housing program,” said Andrew Holm, Partner in the Ares Real Estate Group. “This project underscores Ares’ commitment to corporate sustainability by investing in public-private partnership opportunities that generate positive environmental and social impact. We are excited to be part of this great project as we work to realize the important benefits for all stakeholders involved.”
“It is extremely satisfying to work alongside developers who are making a powerful impact, positively changing the fabric of a neighborhood,” said Christopher Peck, Senior Managing Director with JLL. “Alloy is one of those developers and the Alloy Block is one of those special projects.”
The first phase of the Alloy Block will comprise two components: the city’s first all-electric residential tower and first Passive House-compliant public schools. The 44-story, 480 ft. tall tower designed in-house by Alloy will include 441 mixed-income residences at 505 State Street and 30,000s/f of retail at 100 Flatbush Avenue.
The residential portion will include 396 rental apartments and 45 affordable residences with rents starting as low as $750 per month, developed in partnership with Fifth Avenue Committee, a 40-year old Brooklyn nonprofit community development corporation.
Common space for residents will include a fitness center, flexible workspace, and a rooftop pool. The retail portion of the building will feature 20 ft. ceilings and floor to ceiling glass fronting Flatbush Avenue in the most transportation rich location in the borough.
The adjacent public elementary school will be located at 489 State Street and the new KGIA high school at 380 Schermerhorn Street. KGIA, the city’s first Arabic-language focused high school, is currently housed in a severely outdated building. The new facility will provide a new cafeteria, gym and library. The elementary school’s gym and auditorium are positioned along State Street and will be accessible to the community. Both schools were designed by Architecture Research Office.
“The two Passive House schools that we designed as a part of the Alloy Block embody the rarest of opportunities—a new public building that combines an emphasis on design and urbanism with innovative sustainability,” said Stephen Cassell, Principal at Architecture Research Office. “The result will contribute to the life and fabric of the city, while protecting its future.”
Sustainability is a core component of the Alloy Block’s first phase. With buildings as New York City’s single largest contributor to carbon emissions and global warming, Alloy will set a new standard for energy efficient building construction with an all-electric tower.
All functions within the building typically run by natural gas will be replaced to run off electricity. For example, residential units will feature induction cooktops and heat pump dryers and base-building systems like hot water heating and HVAC will be completely electric, which will eliminate carbon emissions both in the apartments and from the building. These improvements will allow the building’s operations to be carbon neutral upon completion. At the same time, the schools will be the city’s first to meet rigorous Passive House compliance.
The Alloy Block will comprise five old and new buildings with roughly 850 residences, including approximately 200 permanently affordable apartments, 200,000 s/f of Class A office space, 40,000 s/f of retail space, the two state-of-the-art, Passive House-compliant schools, more than 500 parking spaces for bikes – and no parking for cars.
The project’s second phase will include a roughly 840-foot-tall residential, office and retail tower designed by Alloy that also includes a home for a local cultural institution, along with two preserved historic structures.
The Alloy Block is a model of transit-oriented development, located adjacent to Atlantic Terminal, the city’s second-largest transit hub. It’s also next to the Brooklyn Cultural District, and Barclays Center. The project, which is bounded by Flatbush Avenue, Schermerhorn Street, 3rd Avenue and State Street, was approved through the City’s Uniform Land Use Review Procedure in September 2018.