Alloy Development And The Vistria Group Announce Closing Of $535M In Capital For Tallest Passive House Building In The World, One Third Avenue
62-story mixed-use tower is the second phase of the Alloy Block in Downtown Brooklyn which will deliver 583 market-rate and affordable housing apartments, retail, and office space to the community
Alloy Development (Alloy) and The Vistria Group (Vistria) today announced the closing of $535 million in capital for construction of the second phase of the Alloy Block in Downtown Brooklyn and the tallest Passive House building in the world, One Third Avenue. Rising to 730 feet, One Third Ave completes the Alloy Block, joining the two projects in the first phase of development – 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. One Third Ave will also be one of the first projects to break ground under New York City’s “City of Yes” zoning, leveraging the improved rules to expand housing production, including high-quality, permanently affordable housing.
Vistria, a private investment firm that seeks to deliver both superior financial returns and meaningful impact, will invest over $120 million of equity to capitalize the development. In addition, Kayne Anderson Real Estate is providing $375 million of debt. This deal represents The Vistria Group’s first ground-up development for its Real Estate strategy, one of the nation’s largest dedicated affordable housing investment strategies, co-founded and led by Margaret Anadu. Chris Peck, Nicco Lupo, and Peter Rotchford of JLL Capital Markets managed the capital raise.
“Securing financing for One Third Ave marks a pivotal milestone not just for this 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 Ave 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 Ave 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 The Vistria Group’s Head of Real Estate, Margaret Anadu. “As our first investment in new construction, we’re proud to partner with Alloy and Kayne Anderson on a project that will provide 583 mixed-income units of the highest quality in one of Brooklyn’s most dynamic neighborhoods.”
“We are proud to support our partners at Alloy and Vistria in bringing One Third Avenue to life,” said Lee Levy, Senior Managing Director and Head of Real Estate Debt at Kayne Anderson Real Estate. “This project represents a powerful convergence of sustainability, design excellence, and community impact.”
One Third Ave will complete Alloy’s commitment to deliver approximately 200 permanently affordable homes in Downtown Brooklyn. The first phase of the Alloy Block included 45 affordable apartments, and One Third Ave will deliver 153 affordable apartments, with rents starting at $1,023 per month. Apartments will be located at the top of the building from floors 11 to 60 and will provide residents with the quality design that Alloy has made standard in all of its developments. The tower’s podium will consist of six floors and 60,000 square feet of office space, elevated 100 feet above grade. One Third Ave includes adaptive reuse of two historic buildings from the 1800s on State Street and Schermerhorn Street, along with a new building on Third Avenue, which will provide 30,000 square feet of retail space for the surrounding community.
The façade of the building will be designed with oversized 6-foot by 7.5-foot operable windows that offer sweeping views and let in natural light, while adhering to Passive House standards. An airtight, well-insulated building envelope and filtered fresh air will offer a healthy indoor environment with a low carbon footprint. The development’s residential and office spaces will share energy resources to minimize waste heat.
One Third Ave’s mixed-use tower will rise from an existing courtyard sitting behind the two historic buildings, providing a historical connection to the neighborhood. Entrances to the various uses are thoughtfully oriented to compliment the character of the adjacent streets. The residential lobby entrance will be within the existing building on State Street, a quiet, tree-lined block. In contrast, the commercial lobby entrance will sit on the busy corridor of Schermerhorn and the future Temple Square Plaza. Retail storefronts will stretch along Third Avenue between the historic structures and the new contemporary infill.
One Third Ave follows the first phase of the Alloy Block and New York City’s first all-electric skyscraper, 505 State Street. The 44-story tower located at the State Street and Flatbush Avenue intersection is a mixed-use development that redefines green living. The 441 apartments replace all functions typically run by natural gas with electricity, eliminating carbon emissions across the building and promoting healthier indoor environments. 505 State Street offers residents a suite of top-of-the-line amenities, including a 3,000-square-foot gym, a yoga studio, a grow room, playspace for children, and ample workspace. The building has set a new standard for energy-efficient, transit-oriented development, with more than 500 bike parking spaces and no parking for cars. Along with 30,000 square feet of retail space, 505 State Street is next to two schools that meet Passive House standards – the city’s first public schools to do so.
Once complete, the Alloy Block will be the most sustainable block in Brooklyn, home to over 1,000 residences, including approximately 200 permanently affordable apartments, 60,000 square feet of Class A office space, 30,000 square feet of retail space and two state-of-the-art Passive House public schools.
About The Vistria Group
The Vistria Group is building a new kind of private investment firm that seeks to deliver both financial returns and impact. It invests in essential industries like housing, healthcare, knowledge & learning solutions and financial services that deliver value for investors as well as communities, employees and consumers. With $17 billion in AUM, The Vistria Group looks deeper by working as a true partner, drawing on its deep sector knowledge, operational expertise, unique network, diverse team and impact orientation to achieve transformational growth. For more information, please visit vistria.com
About Alloy
Alloy is committed to making Brooklyn beautiful, sustainable, and equitable. As architects and developers, Alloy sees opportunity in the diversity and complexity of the urban context, and uses great architecture and thoughtful development to positively impact the built environment. Current projects include the Alloy Block in Downtown Brooklyn and 240 Nassau Street in Fort Greene, Brooklyn.
About Kayne Anderson Real Estate
Kayne Anderson Real Estate is a leading real estate investment firm, managing approximately $18 billion in assets under management across opportunistic equity, core equity, and real estate debt, with sector expertise in medical office, seniors housing, off-campus student housing, multifamily housing, and self-storage. Kayne Anderson Real Estate is part of Kayne Anderson, a $38 billion alternative investment management firm with more than 41 years of successful experience across real estate, infrastructure, energy, and credit. For more information, visit kayneanderson.com.
