St. Nicks Alliance Adaptive Redevelopment
Great news about a Grand Street closing arrived before 2015 came to a close. A few days prior to Christmas, St. Nicks Alliance completed the financing and purchase of the city owned property at 695 Grand Street that gives them a green light to create 51 new affordable apartments. The apartments will be affordable to a range of extremely low income to moderate income households. To retain the commercial integrity of Grand Street the project will also include more than 10,000 square feet of ground floor commercial space.
“Despite all of the construction occurring in North Brooklyn in past decade this project will provide some of the few newly constructed affordable apartments to be built in East Williamsburg in that time,” said Frank Lang, St. Nicks Alliance’s Director of Housing
The site, though owned by the City, was originally developed in 1985 by St. Nicks Alliance as a one story commercial property with an eye to help stabilize the local commercial environment. The formation of the local Grand Street Business Improvement District was enabled by this approach.
In 2013, St. Nicks Alliance secured funding from the State of New York to develop a new building with a ground floor commercial space and affordable housing above. In the ensuing two years the property has gone through the NYC land disposition process, and the diverse sources of financing were finalized.
The $22.7 million development is being financed through a combination of private and public partners. The State of New York allocated Low Income Housing Tax Credits for the project, which in turn has raised equity from Citibank N.A. through Richman Housing Group. Citibank is also providing the construction and permanent financing for both the residential and commercial components. The City of New York is providing low interest loan financing and real estate abatements in addition to the land.
The project is expected to be under construction for nearly two years toward the goal of occupancy in late 2017. The marketing for the lottery to fill the low and moderate income apartments will begin in spring 2017.