Gotham Organization, Monadnock Development Secure $270M For New Housing Project
Goldman Sachs, New York State Housing Finance Agency and NYC Department of Housing Preservation and Development provided loans
By Brian Pascus April 9, 2024 4:11 pm
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Financing has been secured for the first phase of an ambitious Innovative Urban Village affordable housing project that aims to transform East New York, Brooklyn.
Gotham Organization and Monadnock Development — together with their nonprofit partner the Christian Cultural Center — have secured $270 million in construction financing to build a 386-unit mixed-use multifamily property on a 10.5-acre site where long-range plans call for nearly 2,000 affordable housing units, Commercial Observer has learned.
The New York State Housing Finance Agency (HFA) provided a $170 million loan through tax-exempt bonds, while the New York City Department of Housing Preservation and Development (HPD) provided an additional $47.1 million in third-mortgage subsidiary funding toward the ultimate construction of the project. Urban Investment Group at Goldman Sachs is providing $143 million in low-income tax credits, according to property records.
Upon the completed construction and stabilization of the project, the amount of the mortgage is expected to fall to $27.1 million, per property records.
“We are thrilled to reach this integral milestone to begin construction,” said Bryan Kelly, president of development of Gotham Organization. “We have worked with the community to create a village, not just build buildings.”
Located at 12020 Flatlands Avenue in Brooklyn’s East New York neighborhood, the 386-unit multifamily project will have 100 percent affordable housing. All residential units in the property will be reserved for tenants earning 80 percent or less of the area median income. The building will also feature 16,755 square feet of retail space.
Sitting on the site of the Christian Cultural Center, the project is just the first phase of plans to develop Innovative Urban Village, a planned mixed-use community that will boast 1,975 affordable housing units upon its multiphase completion. Plans for the project include a performing arts center, a grocery store, local retail, open park space, and new community amenities. The project is expected to take more than a decade to complete.
This first phase of Innovative Urban Village is scheduled to take two years to build, with the 386-unit affordable apartment complex scheduled to open in 2026.
Brian Pascus can be reached at bpascus@commercialobserver.com
