Affordable housing developer Phipps Houses received a huge boost this week, securing a $217 million construction loan from New York City Department of Housing Preservation and Development, the New York City Housing Development Corporation, and Wells Fargo for its latest housing project located in East New York, reports Crain's.
Designed by Dattner Architects, the complex will rise on a full-block, former industrial site at 250 Euclid Avenue. The proposed project, dubbed Atlantic Chestnut, will include 1,150 affordable units and 60,000 square feet of commercial and community space in three towers ranging from eight to 14 stories. The development will also have 200 parking spaces.
The timeline put forward by the developer sees the Atlantic Chestnut constructed in phases with the first 403 apartments — reserved for those earning between 40 and 80 percent of area median income and the formerly homeless — constructed first alongside 21,500 square feet of commercial and community space. Phase one is set to break ground in the coming days and wrap in 2023. The development as a whole is expected to be completed by 2025.
The project falls within the 2016 East New York rezoning which was pushed through by city officials to bolster the neighborhood's affordable housing stock by at least 6,000 units. The Atlantic Chestnut is one of the biggest projects to come through as part of the rezoning that local residents and community groups have otherwise criticized as failing to deliver on its many promises.
“We have this giant piece of the neighborhood that’s going to be affordable forever," said Phipps Vice President of Real Estate, Michael Wadman. "I think it’s a huge win for housing and for the city.”