Phase 2 Passive House Development to Rise on DoBro’s Alloy Block Secures $500M Financing
Kayne Anderson Real Estate has provided $375 million in loans for Alloy Development’s planned One Third Avenue mixed-use development. An additional $120 million in equity was provided by Vistria Group, a Chicago-based private investment firm. As part of the deal, Vistria will take a “majority stake in the project as a limited partner,” in what will be the firm’s first ground up development. Another $40 million is being provided by Alloy, which will lead development and serve as general partner. The 63-story tower will reach a linear height of 725 feet and include a mix of 682-units of market-rate and affordable housing, 60,000 square feet of office space, and 30,000 square feet of retail space. Construction will rise on the westernmost corner of the Alloy Block — a full 61,399-square-foot triangular block bound by Flatbush and 3rd Avenues and State and Schermerhorn Streets in Downtown Brooklyn. Two buildings constructed in the 1800s that front State and Schermerhorn Streets will be incorporated into the development and house retail space. One Third Avenue is “aspiring to be the tallest passive house in the world” according to the site’s dedicated website; and will join the first development, a 44-story, 440-unit all-electric tower at 505 State Street that was completed last year, claiming the title at the time as the “first residential development in New York City to be fully powered by off-site solar power.” The State Street building sits on a podium that houses a mix of tenant amenities as well as retail space under the address 100 Flatbush Avenue. The remaining new building within the Alloy Block complex houses two schools — the Khalil Gibran International Academy and PS456, The Elizabeth Jennings School for Bold Explorers, both of which are the city’s first Passive House designed public schools.
Source: https://therealdeal.com/new-york/2025/08/26/alloy-snags-500m-for-one-third-avenue/
Source: https://www.thealloyblock.com/