Alloy’s passive house construction scores the highest suburban loan in September

Projects in the New York City suburbs scored big in September as lenders opened their wallets to multifamily, mixed-use and industrial buildings. Alloy Development’s passive tower in downtown Brooklyn received the largest loan of the month, for $375 million, from Kayne Anderson Real Estate. Nearby, Goldman Sachs backed JCS Realty’s lease in Boerum Hill with a $121 million loan. A self-storage portfolio and an art warehouse also generated refinancing.

Here are September’s top five loans for the suburbs.

Passive payday | $375 million | Downtown Brooklyn

Kayne Anderson Real Estate provided $375 million in loans for Alloy Development’s One Third Avenue, a 583-unit tower planned for downtown Brooklyn. According to Alloy, the 220-metre tower will be the tallest in the world built to passive house standards, a design method that aims to reduce energy costs through extreme insulation. The project is the second phase of “Alloy Block,” which includes the city’s first all-electric skyscraper at 505 State Street and two public schools at 489 State Street. Along with the loan, Vistria Group injected $120 million in equity into its first land development and took a majority stake in the project as a limited partner. Alloy is leading the development as general partner and has secured $40 million.

Brooklyn Bucks | $121 million | Boerum Hill

Goldman Sachs provided a $121 million loan for Jacob Schwimmer’s Boerum Hill multifamily building at 540 Atlantic Avenue. The new financing replaces a $63 million loan from Valley National Bank. Schwimmer’s JCS Realty is nearing completion of the 159-unit building, which will include 48 units for residents at 130 percent of the area median income. Amenities include a fitness room, media room, business center and rooftop terrace.

Self-storage score | $120 million | Bronx, Queens and Brooklyn

Affinius Capital Management provided a $120 million loan for a three-property self-storage portfolio owned by Prime Storage. Lender 3650 Capital provided another $36 million in mezzanine debt. The loan will be used to refinance 1260 Zerega Avenue in the Bronx, 31-07 20th Avenue in Queens and 1084 Rockaway Avenue in Brooklyn. According to the researchers, the facilities were opened and renovated in 2016 and 2017 News about multiple homes.

Warehouse windfall | $105 million | Bushwick

Deutsche Bank and Goldman Sachs provided a $105 million loan for Uovo’s art storage facility at 105 Evergreen Avenue in Bushwick. The new financing replaced a $57.4 million loan from PNC Bank. Uovo purchased the 112,000-square-foot industrial building in 2020 for $126 million and redeveloped it, according to From Crain. It is equipped with climate control, 7-meter high ceilings and several emergency generators. The new mortgage has a term of ten years and an interest rate of 5.9 percent, Crain’s reports, citing rating agency KBRA. Uovo will invest the proceeds from the refinancing back into the company, Crain’s said.

Terra trove | $74 million | Long Island City

Morgan Stanley provided a $74 million loan for ZD Jasper Realty’s new mixed-use development at 45-19 Davis Street in Long Island City. The new financing replaced a $29 million construction loan from Bank Hapoalim. The recently completed 17-storey development, known as Terra, has 122 units, ground floor retail space and a parking garage.

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