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Affordable Brooklyn development closes on $67M finance deal

Real Estate Weekly April 20, 2016

Pennrose Properties, LLC, Duvernay + Brooks, and Blue Sea Development have closed on construction financing for the third and final phase of the Revision Prospect Plaza development in the Oceanhill-Brownsville section of Brooklyn.

This phase will complete the team’s $200 million redevelopment of the New York City (NYC) Housing Authority’s former Prospect Plaza Houses.

The $67 million third phase includes 135 units of 100 percent affordable Low Income Housing Tax Credit (LIHTC) housing.

Multiple sources contributed to the financing, including NYC Housing Development Corporation tax-exempt bond and subsidized financing, NYC Department of Housing Preservation and Development, City of New York Reso A Funds, New York State Homes and Community Renewal, Citibank and RedStone Equity Partners.

The completed development will include 22,000 square feet of commercial space anchored by a grocer tenant and a 10,000 square foot community center.

As part of the complex the team will also develop an adjacent 0.75 acre public park, which will be transferred to the NYC Department of Parks and Recreation upon completion.

“This adds yet another major milestone to Pennrose’s significant development track record in New York City,” said Richard K. Barnhart, CEO of Pennrose Properties.
“The development is already having an impact on revitalizing the area by creating new value for a previously underutilized property.”

The first phase of the redeveloped Prospect Plaza includes 110 units, and will be complete this spring. The second, 149 unit phase, is currently under construction and will be complete by the end of 2016.

This third phase is expected to be ready for occupancy in the first quarter of 2018.
Prospect Plaza was originally built in 1974 and consisted of four high-rise towers with 365 units situated on three sites. One tower was demolished in 2005 and three were vacated in 2003 to prepare for rehabilitation.

Funding for the project was delayed until 2010. The three remaining towers were demolished prior to the conveyance of the sites to Pennrose and the other co-developers.

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