[NYguy]

http://www.brooklyneagle.com/categor..._id=4&id=40456

Construction Begins on 42-Story Tower on Flatbush Avenue



by Linda Collins
01-03-2011

Joining three other residential towers along Flatbush Avenue in Downtown Brooklyn — Oro, Avalon Fort Greene and Toren — construction began last week on a fourth, according to its developers The Dermot Company and Grosvenor Investment Management US Inc.

The land parcels have been assembled, they say, and financing is in place for the 42-story, 457-foot-tall mixed-use residential tower on a through lot between Flatbush Avenue, Fulton Street and Rockwell Place.

Additionally, Department of Buildings records show approved permits for the new building, its foundation and framing, excavation, underpinning and shoring work, among others. The development will have 327 rental units — 20 percent of which will be affordable, according to Stephen N. Benjamin, principal at Dermot.

The project will also have 7,600 square feet of retail space along its Flatbush and Fulton sides, a 200-car parking garage and amenities on the fourth and 42nd floors.

“With our year-end deadline approaching, we started construction on 29 Flatbush last week, before our closing earlier today [Dec. 29],” said Benjamin. “While the project was delayed due to the financial crisis in 2008, 29 Flatbush was well positioned to capitalize on an opportunity to execute quickly, and that opportunity arose this fall when all parties involved green-lighted us for closing by year end. We had to race to the goal line, but our team and partners got it done.”

As the Eagle reported last week, the project’s funding came from $90 million in tax-exempt financing from the NYS Housing Finance Agency (HFA) and credit enhanced by Bank of America, Capital One and $70 million of equity from Dermot’s partner, Grosvenor Investment. “The funding of the development phase underscores [our] ongoing commitment to invest in high quality housing in New York City. We worked very closely with a variety of city and state agencies to accomplish the transaction and really appreciated the support our team received from them,” said Robert Kilroy, Grosvenor’s managing director.

At the closing, the NYC Department of Housing Preservation and Development (HPD) sold a piece of city-owned property to Dermot to finalize the land assemblage.

“The stars aligned in late 2010 when all of the financing pieces for the development came together,” said Drew Spitler, director of development at Dermot. “Grosvenor is a partner who recognized this opportunity and decided they were committed to getting this project closed as soon as possible.”

Bovis Lend Lease is acting as construction manager of the development and Ismael Leyva Architects designed the project.

In addition, the project utilizes inclusionary housing certificates that Dermot says it purchased from a community group that built affordable housing at 15 Quincy St. in Clinton Hill.