Alloy Secures $290M Recap, $43M Construction Loan for Brooklyn Project
The two-phase development includes New York City’s first all-electric residential tower
By Brian Pascus December 23, 2024 1:35 pm
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Brooklyn-based developer Alloy Development has secured a $290 million recapitalization for its mixed-use project, The Alloy Block, at 505 State Street in Downtown Brooklyn.
Commercial Observer has learned the firm has simultaneously secured a $42.5 million construction loan from Maxim Capital Group, a New York-based, bridge and balance sheet lender, to complete the second phase of construction at The Alloy Block, directly next to 505 State Street on a site that will include additional mixed-income apartments as well as office and retail spaces.
Construction on the second phase of The Alloy Block is slated to begin in 2025.
New York Life provided the five-year, fixed-rate senior loan for the recapitalization, with the JLL Capital Markets team of Christopher Peck, Peter Rotchford and Nicco Lupo representing Alloy on the recapitalization.
Adjacent to Downtown Brooklyn’s Atlantic Avenue and Barclays Center subway station, 505 State Street includes New York City’s first all-electric residential tower at 100 Flatbush Avenue. Construction on that 44-story, 440-unit building with 28,752 square feet of retail space was completed earlier this year. Two public schools are now open on the site as well.
Alloy began construction on the project in 2019, with demolition of an existing structure on the site. After some delays, Alloy formally began construction in July 2021 after receiving a $240 million construction loan from Goldman Sachs, Related Companies and Ares Management.
JLL’s Peck said in a statement that 505 State Street “exemplifies cutting-edge sustainable development,” and lauded Alloy Development’s focus on environmental consideration in its New York portfolio. Alloy’s properties include 240 Nassau Street, the result of a deal whose acquisition was financed by Maxim last month.
“This transaction demonstrates how thoughtful investment can yield both financial rewards and positive societal impact, particularly as sustainability becomes an increasingly crucial factor for lenders,” Peck said.
Brian Pascus can be reached at bpascus@commercialobserver.com
