Alloy Development and The Vistria Group announced the closing of $535 million in funding to build the second phase of One Third Avenue, part of the Alloy Block in Downtown Brooklyn. Once completed, the building is set to become the tallest Passive House building in the world.
Rising 730 feet, One Third Ave will join Alloy’s first-phase projects, 505 State Street, New York City’s first all-electric skyscraper and 489 State Street, home to the city’s first two public schools built to Passive House standards.
The building will also be among the first projects to take advantage of New York City’s “City of Yes” zoning, expanding housing production to include high-quality, permanently affordable homes.
"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," Alloy Chief Executive Officer Jared Della Valle said in a statement. "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.
Vistria, a private investment firm, is putting in over $120 million in equity, while Kayne Anderson Real Estate is providing $375 million in debt.
“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 Margaret Anadu, the Vistria Group’s Head of Real Estate.
One Third Ave will deliver 583 mixed-income units, including 153 permanently affordable apartments with rents starting at $1,023 per month.
These homes will sit from floors 11 to 60, providing residents with Alloy’s signature design standards. The tower’s podium will include six floors with 60,000 square feet of office space, elevated 100 feet above grade.
The project also incorporates two historic 1800s buildings and a new Third Avenue structure, adding 30,000 square feet of retail space for the neighborhood.
The building’s facade will feature oversized operable windows, filling apartments with natural light while meeting Passive House standards.
An airtight, highly insulated envelope and filtered fresh air will create a low-carbon, healthy indoor environment. Residential and office spaces will share energy resources to reduce waste.
“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.”
When complete, the Alloy Block will house over 1,000 residences, including about 200 permanently affordable apartments, alongside 60,000 square feet of office space, 30,000 square feet of retail, and two state-of-the-art Passive House public schools.
