The team behind One Third Avenue, what is expected to be the tallest passive house building in the world, is one step closer to bringing it to fruition. Alloy Development and The Vistria Group closed $535 million in capital for the construction of the second phase of the Alloy Block in downtown Brooklyn, New York.
One Third Avenue joins two projects from the first phase—505 State Street, New York City’s first all-electric skyscraper, and 489 State Street, the first two public schools designed to meet passive house standards.
The 62-story mixed-use tower will deliver 583 market-rate and affordable units as well as office space and retail. One of the first developments to break ground under New York City’s City of Yes zoning, it will provide 153 affordable apartments with rents starting at $1,023 a month.
Vistria, a private investment firm, will invest over $120 million of equity to capitalize the development. In addition, Kayne Anderson Real Estate is providing $375 million of debt. JLL Capital Markets’ Chris Peck, Nicco Lupo, and Peter Rotchford managed the capital raise.
“Securing financing for One Third Avenue marks a pivotal milestone not just for the project, but for what we believe is the future of sustainable urban development,” said Alloy CEO Jared Della Valle. “As the second phase of the Alloy Block, One Third Avenue builds on our commitment to high-quality design and adhering to the highest environmental standards, ultimately raising the bar across the industry. Thanks to our partners at Kayne Anderson and The Vistria Group for supporting this project as we work to tackle climate change on a large scale.”
One Third Avenue also marks Vistria’s first ground-up development for its real estate strategy.
“One Third Avenue represents exactly the type of transformative development our real estate strategy was designed to support: delivering meaningful affordable housing while redefining sustainable urban living and forging public-private partnerships that achieve better outcomes for communities than either sector could deliver alone,” said Margaret Anadu, Vistria’s head of real estate.
Apartments at One Third Avenue will be located at the top of the building from floors 11 to 60. The podium will comprise six floors and 60,000 square feet of office space, elevated 100 feet above grade. The development also includes the adaptive reuse of two historic buildings from the 1800s on State and Schermerhorn streets, along with the new building on Third Avenue, that will provide 30,000 square feet of retail space.
The facade will be designed with oversized operable windows that provide sweeping views and ample natural light while adhering to passive house standards. The airtight, well-insulated building envelope and filtered fresh air offer will provide a healthy indoor environment with a low carbon footprint.
Once the second phase is complete, the Alloy Block is expected to the most sustainable block in Brooklyn, home to over 1,000 residences, including approximately 200 permanent affordable housing units; 60,000 square feet of Class A office space; 30,000 square feet of retail space; and two state-of-the-art public schools.