461 Alabama

$30 Million

461 Alabama Avenue, Brooklyn NY

Project Information

In January 2017, CB-Emmanuel Realty was awarded a site under the 2015 HPD MWBE Building Opportunity RFP.  The site awarded was 461 Alabama Avenue, Brooklyn, NY B/L 3803/6.  The project has been underwritten to the HPD Supporting Housing Loan Program term sheet and is contemplated to be a either a City or State 9% TC project with HPD SHLP Subsidy and a NYC 1515 operating and project-based rent award.   To date, the development team has achieved:

·       NYC 1515 Congregate Site award (June 2018) 

·       ULURP certification (January 2019), 

·       DOB submission (April 2019).

·       General Contractor Bids (May 2019)

 Project Design and Scope of Work

The proposed design calls for a newly-constructed seven (7) story building with 71 units.  The building will include 55 studio, 14 one-bedroom, and 2 two-bedroom apartments. The building will approximately total 47,000 sq. ft.  Active design features have been incorporated throughout the building.   The entry lobby contains a reception desk and mailroom.  Offices for support service delivery will be located in the cellar, along with a multipurpose room for tenant use. Tenant and bike storage are also located in the cellar.  The design incorporates a shared landscaped garden in the rear yard available to all tenants and a green roof with solar panels. No parking is planned as none is required by zoning.  Appliances and finishes will adhere to Enterprise Green Communities’ standards and be Energy Star rated.

Land Information

The proposed development is located on vacant City-owned land offered through New York City Housing Preservation & Development 2015 M/WBE Building Opportunity RFP.   461 Alabama Ave. is located in the Brownsville neighborhood of Brooklyn.  

Project Location and Market Information

The site is located near Livonia Avenue and is easily accessible to the 2, 5, and L trains.  Nearby commercial uses are found on Livonia and Pennsylvania Avenues, and there has been significant and continuing new investment in residential and mixed-use development along Livonia Avenue and other areas of the neighborhood, including some of the large NYCHA developments in the area.  The central location and proximity to transportation, commercial and community services make this an ideal location for new affordable residential development.  CB-Emmanuel Realty, LLC, the Sponsor of this project, is the owner of the surrounding buildings.

Project Financing Information

Sixty percent (42 units) of the units will be dedicated to formerly homeless, disabled residents referred from the New York City Dept. of Homeless Services (NYC DHS/HRA) or other referring agency under the NYC 1515 service and operating agreement.   The remaining 27 units will be leased to income qualified residents in the community earning up to 60% AMI.  There will be one (1) unit for an on-site superintendent. The unit distribution of homeless to low-income units reflects the HPD Supportive Housing Loan Program terms. The 42 homeless units will be underwritten up to FMR assuming NYC1515 project-based rental contract on those units. The development contemplates long term affordability of 60 years or longer per subsidy and land disposition requirements.  The development team envisions applying for both the HPD 9% round end of Summer 2019 as well as the State 9% early round in order to secure a Q1 2020 construction closing.  A 420c tax exemption is assumed as well.  The estimated Total Development Cost is approximately $30MM.  The Development Team is currently evaluating General Contractor bids, which ranged from $17.8MM to $21.9MM.

Ownership Structure 

461 Alabama Ave will be co-developed by CB Emmanuel Realty, LLC and Services for the Underserved (SUS).  CB Emmanuel Realty will maintain majority ownership in the project through development, with long-term majority interest remaining with SUS. Attached is a draft organization chart.

As a social services provider, SUS will provide on-site supportive services for the special-needs tenants under a NYC 1515 service agreement. As property manager, Shinda Management Corporation will be responsible for marketing, lease-up, and ongoing building management as well as the ongoing required LIHTC reporting for the duration of the compliance period.  Shinda and SUS will coordinate on lease-up and management of the special needs units to ensure comprehensive management services for the formerly homeless, disabled residents.