Affordable Housing Development at Greenpoint Hospital Site Lands $235M Financing
By Andrew Coen July 1, 2024 3:21 pm
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The sponsors behind the redevelopment of the former Greenpoint Hospital site in East Williamsburg, Brooklyn, have nabbed $235 million of construction financing for the second phase of the project, Commercial Observer has learned.
Bank of New York Mellon issued a letter of credit and Capital One took a 49 percent participation share in the next phase of the Kingsland Commons development, which will include an 18-story affordable housing building.
The $235 million financing package involves a combination of bonds and mortgage debt from New York City Housing Development Corporation (HDC). It also includes funding from the New York City Department of Housing Preservation and Development (HPD) and the New York State Energy Research and Development Authority (NYSERDA).
The Kingsland Commons program is spearheaded by developers The Hudson Companies and St. Nicks Alliance in partnership with the HPD, HDC, NYSERDA and the New York City Energy Efficiency Corporation.
“We’re committed to developing projects with high-quality housing that will benefit communities for generations to come, and transforming the Greenpoint Hospital campus into Kingsland Commons fulfills our mission for residents in East Williamsburg,” said Ernesto Padron, development director at Hudson Companies, said in a statement.
HPD tapped Hudson Companies along with nonprofit groups St. Nicks Alliance and Project Renewal in 2018 to develop a multi-phased development at the site that formerly housed Greenpoint Hospital, which has been closed since 1982. The first phase, which broke ground in November 2021, involves the adaptive reuse of the 3.4-acre property’s former hospital nurses residence into a 200-bed men’s shelter that will be operated by Project Renewal.
The Kingsland Commons’ second phase will involve constructing an 18-story building with 311 affordable housing units designated for low-income households earning between 30 and 80 percent of area median income (AMI) with 93 set aside for homeless individuals. Property amenities will include an outdoor courtyard, a playground, a rooftop terrace, a fitness center, a children’s playroom and a tenants’ lounge.
After completion of the second phase of Kingsland Commons, the project’s sponsors plan to rehabilitate two existing buildings and construct two new buildings on the property. This will create roughly 557 additional units of affordable housing along with a 200-bed men’s shelter, a health clinic, a senior center and a workforce development center.
“HDC is proud to be part of this innovative, multi-phased redevelopment effort that will effectively address the housing needs of New Yorkers, including our aging seniors and formerly homeless individuals and families,” Eric Enderlin, HDC president, said in a statement.
Bank of New York Mellon and Capital One did not immediately return requests for comment.
Andrew Coen can be reached at acoen@commercialobserver.com
