[NYguy]

http://online.wsj.com/article/SB1000...googlenews_wsj

Brooklyn's Shifting Center






By JOSEPH DE AVILA
Feb 13, 2012

New York's Steiner family is planning a 52-story rental apartment tower on a gritty block in downtown Brooklyn in what would be the latest expansion of residential development in the borough beyond its traditional boundaries.

The family, which is best known for developing a Hollywood-scale studio in the Brooklyn Navy Yard, is moving forward with a building that would include about 720 units and 50,000 square feet of store space. The Steiners acquired the bulk of the site, at the intersection of Schermerhorn and Flatbush avenues, for $30 million in November, and plan to break ground early next year at the latest.

Douglas Steiner, who runs the business with his father David, said in an interview that they are prepared to make a $100 million equity investment into a project that would cost $325 million to $350 million. The Steiners also are seeking about $250 million in financing through the state's "80/20" subsidized housing program. The program requires that rents of 20% of the units be affordable to people with moderate income.

While it's been slowed by the downturn, large-scale residential development in downtown Brooklyn has been breaking out of its traditional neighborhoods like Brooklyn Heights and Park Slope over the past decade. The Steiners' project, which they've named the Hub, would continue this trend. Despite its proximity to the Brooklyn Academy of Music, the site today consists of undeveloped lots and low-rise buildings, one of which houses a New York state parole office. Other properties on the block include bodegas and a shoe-repair shop.