$167M Construction Loan in Place for Brooklyn M-F Project

Forest City Ratner Cos. has closed on a $167 million construction financing deal for 80 DeKalb, a 365-unit apartment project in Downtown Brooklyn. The New York State Housing Finance Agency approved the project for $109.5 million in tax-exempt bonds and an additional $27.5 million in taxable bonds. Construction on the 335,000-square-foot building commenced last month. For Forest City Ratner, the project marks Brooklyn-based company’s first residential development endeavor in Brooklyn. Wachovia Bank N.A. and Helaba supplied credit enhancement to the $137 million bonds for 80 DeKalb, while the National Electrical Benefit Fund provided a $10 million mezzanine loan and $20 million of credit enhancement. The 34-story tower, located off Flatbush Ave. near Fort Greene Park at the border of the BAM Cultural District, will offer 292 market-rate units and 73 affordable housing residences, which will earn the property the title of the first 80/20 project to be funded with New York State HFA-issued bonds. Furthermore, 80 DeKalb will stand out among most other 80/20 projects, as it will maintain its affordable housing segment for 99 years. By incorporating affordable housing units into 80 DeKalb, Forest City Ratner will contribute to New York City Mayor Michael Bloomberg’s New Housing Marketplace Pan calling for the development and preservation of 165,000 affordable housing residences over a 10-year period. Designed by Costas Kondylis, 80 DeKalb will adhere to guidelines necessary to achieve LEED Certification. Work is on target to reach completion in summer 2009. Forest City Ratner owns and operates 32 properties in the New York metropolitan area. Its parent company, the $10.5 billion Cleveland-based Forest City Enterprises Inc., owns, develops and manages commercial and residential real estate across the United States. Its portfolio includes retail, apartment, office and hotel properties.