Developers of what is poised to be the world’s tallest passive house building in the world secured $500 million to get the project off the ground.
Alloy Development on Monday closed on $375 million in loans from Kayne Anderson Real Estate for One Third Avenue, a 583-unit tower planned for Downtown Brooklyn. Additionally, Vistria Group, in its first ground-up development, is infusing $120 million in equity and taking a majority stake in the project as a limited partner. Alloy, as general partner, will continue to lead development and is kicking in $40 million.
According to Alloy, the 730-foot tower is slated to be the world’s tallest built to passive house standards, a design method aimed at cutting energy costs through extreme insulation. The project is the second phase of “Alloy Block,” which includes the city’s first all-electric skyscraper at 505 State Street and two public schools (also passive house) at 489 State Street.
One Third Avenue will include 143 affordable housing units, with monthly rents starting at $1,023 per month. These apartments will be reserved for tenants earning, on average, 60 percent of the area median income.
Residential space will span the 11th through 60th floors, and the tower’s podium will include 60,000 square feet of office space. Two buildings constructed in the 1800s on State Street and Schermerhorn Street will also be incorporated into the development, and house 30,000 square feet of retail space.
Demolition work on the site began earlier this year, and the development team expects to begin construction in the fall.
When finished, Alloy Block is expected to include more than 1,000 homes, with 200 set aside as permanently affordable. The electric tower at 505 State Street was completed in July 2024. The developers secured $290 million to replace a $210 million construction loan in December.
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