Douglaston Development Lands $106M in Construction Financing for Affordable Housing
8-story, 158-unit building in Hell's Kitchen will include 25K SF of public space
By Brian Pascus February 26, 2024 4:45 pm
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Jeffrey Levine’s Douglaston Development has secured $125 million in construction financing to build Rialto West, an eight-story, 158-unit affordable housing complex in Manhattan’s Hell’s Kitchen neighborhood, Commercial Observer has learned.
Douglaston is developing the 140,000-square-foot mixed-use project together with the housing development arm of the Entertainment Community Fund, formerly the Actors Fund, a nonprofit connected to the performing arts industry.
The New York City Housing Development Corporation (HDC) and the city’s Housing Preservation and Development Corporation (HPD) are providing $106 million in construction financing through loans funded by tax-exempt bonds, as well as other subsidies.
Funding from the city agencies includes a housing infrastructure fund loan and grant funding for construction of 25,000-square-foot public plaza. A representative from Douglaston shared the source of the $19 million in remaining financing came from a combination of sponsor equity and deferred fee.
“Once complete, Rialto West will offer over 150 brand-new affordable homes in a particularly high-cost area of New York City,” said HDC President Eric Enderlin. “HDC is proud to partner on this collaborative effort and look forward to delivering much-needed affordable housing to the Hell’s Kitchen community.”
Located at 509 West 48th Street, the development will feature 158 units ranging from studios to thee-bedrooms – all listed under an affordable housing umbrella for residents earning 140 percent of the area median income (AMI). The building’s ground floor will include a 5,000-square-foot cultural space, and a public plaza is scheduled to be built at 705 10th Avenue, adjacent to the residential property.
“Rialto West represents a promise to create more affordable homes in high-cost Manhattan neighborhoods, ensuring that all New Yorkers, regardless of income, have access to safe, secure and affordable homes,” said HPD Commissioner Adolfo Carrión Jr.
Levine, chairman of Douglaston Development, and Daniel Arnow, executive director of the Actors Fund Housing Development Corporation, noted that the project will provide dedicated affordable workspaces for artists and other creative types. Arnow also mentioned that the project received strong backing from the local Community Board 4, City Council Member Erik Bottcher and former City Council Speaker Corey Johnson.
Douglaston was awarded the Rialto West site in 2019, 15 years after a city rezoning battle ensured affordable housing would be built on the block and lot. Levine Builders, the construction subsidiary of Douglaston, has been tapped to build the development, while Clinton Management, also of Douglaston, will handle property management duties.
Construction of Rialto West is scheduled to be completed in 2026.
Brian Pascus can be reached at bpascus@commercialobserver.com
