Lendlease, a leading global real estate and investment management group, and joint venture partner Aware Super, one of Australia’s largest superannuation funds, today announced the closing of a $360 million construction loan for the development of 1 Java Street in New York. The 36-story, 834-apartment multifamily development will rise along the Greenpoint waterfront in Brooklyn.
Lendlease arranged a four-bank syndicate consisting of new and existing relationship lenders.
“This financing is proof that experienced, creditworthy sponsors can secure debt financing even in uncertain market conditions,” said Ben Byrne, Portfolio Manager, Lendlease. “Leveraging the strengths of our integrated business model and partnership with Aware Super, Lendlease has forged strong relationships with financial institutions all over the globe, providing us with access to a multitude of capital sources who trust in our ability to execute.”
As an integrated project, 1 Java Street will utilize Lendlease’s Investment Management, Development and Construction business units. The property is slated for completion in 2026.
“The ability of this project to attract debt financing in the current market verifiesour shared belief in the strong fundamentals and future potential of 1 Java Street, a project we believe will not only reshape the Brooklyn waterfront but generate strong cash-on-cash returns for our property portfolio,” said Alek Misev, Senior Portfolio Manager, Aware Super.
Approximately 30% of the apartments at 1 Java Street will be set aside as affordable housing under the Affordable New York Housing Program. The project includes 13,000 square feet of ground-floor retail space, as well as an approximately 18,000-square-foot public waterfront park that connects to the India Street Pier, which is served by the East River Ferry. The Greenpoint Avenue stop on the G line is three blocks east of the development, while multiple bus routes are nearby.
Designed to meet or exceed Local Law 97, New York’s decarbonization legislation, 1 Java Street will target a range of sustainability initiatives including LEED Gold, Fitwel and Waterfront Edge Design Guidelines certification, and is exploring the use of a geothermal system. The project will be the sixth developed and operated as part of the Aware Super and Lendlease joint venture Americas multifamily portfolio, which achieved net zero carbon in 2021.