Downtown Brooklyn, New York, August 28, 2025
News Summary
Alloy Development and the Vistria Group closed a $535 million capital package to build One Third Avenue, a roughly 725–730 ft, 63‑story Passive House mixed‑use tower in Downtown Brooklyn. The financing pairs more than $120 million in equity with $375 million in construction debt. The project will include about 583 apartments (roughly 152–153 affordable), a six‑story elevated office podium, approximately 30,000 sq ft of retail, and adaptive reuse of two 19th‑century façades. Demolition is underway and construction is expected to proceed after permitting, with the scheme notable for applying Passive House standards at tall‑building scale.
One Third Avenue clears $535 million in financing to build a 730‑foot Passive House tower in Downtown Brooklyn
What happened: Alloy Development and the Vistria Group have closed a $535 million financing package to build One Third Avenue, a tall mixed‑use tower in Downtown Brooklyn. The capital includes more than $120 million in equity from Vistria and approximately $375 million in construction debt provided by Kayne Anderson Real Estate. Capital raising for the deal was arranged by JLL Capital Markets.
Key facts up front
- Project name: One Third Avenue
- Developers: Alloy Development and the Vistria Group
- Financing: $535 million total — >$120M equity (Vistria), $375M debt (Kayne Anderson)
- Size and scope: roughly 730 feet tall and about 63 stories with 583 apartments, office and retail space
- Passive House: full Passive House design approach applied at high‑rise scale
Project description and program
One Third Avenue is planned as a mixed‑use tower rising from an interior courtyard behind two restored 19th‑century buildings on State Street and Schermerhorn Street. The residential portion will occupy floors roughly between 11 and 60 and is expected to include 583 apartments. The project includes a six‑story podium that contains about 60,000 square feet of office space elevated nearly 100 feet above the street, and a new retail structure on Third Avenue with about 30,000 square feet of storefronts.
The development also calls for adaptive reuse of the two historic buildings to host a residential lobby in the State Street building plus a commercial lobby and a public plaza on Schermerhorn Street. The tower will rise from the open courtyard behind those façades to preserve and integrate the older structures into the new complex.
Affordable housing and unit mix
The project is described as mixed‑income. Sources in the project paperwork list the number of affordable apartments as either 152 or 153 units; the development team characterizes the building as providing more than 150 affordable homes, with reported affordable rents starting near $1,023 per month. Overall unit count across the tower is reported at 583.
Passive House strategy and sustainability features
One Third Avenue is being delivered to Passive House performance targets. Key design elements include an airtight, heavily insulated building envelope; a filtered fresh‑air ventilation strategy; oversized operable windows (about 6 by 7.5 feet); and shared energy systems between residential and office spaces to capture and reuse waste heat. The developers note that achieving Passive House standards at this height and scale involves exceptional technical and construction rigor.
When finished, the building is reported to become the tallest Passive House‑certified tower in the world, surpassing a previous benchmark. Locally, it has been described as among the tallest in Brooklyn.
Schedule, approvals and context
Demolition work at the site began earlier this year. Public statements and planning notes include two different timing references for full construction start: some materials anticipated construction beginning in the fall of the announcement year, while other schedules point to a summer 2025 start and completion around 2028. City Council approvals for the broader masterplan that includes this site were secured in 2018, and the One Third Avenue parcel is positioned as the final piece or second phase of a larger five‑building complex known as the Alloy Block.
The Alloy Block program already includes more than 1,000 homes, the developer’s earlier all‑electric 505 State Street tower (about 44 stories and 441 apartments, with a portion of affordable housing and a range of resident amenities), and two Passive House public school buildings designed by Architecture Research Office. The school building was designed to meet ultra‑low‑energy Passive House targets while sitting atop an aging subway tunnel — an example of the technical constraints the development team has handled previously.
Financial and development significance
Vistria’s equity commitment represents that firm’s first ground‑up development investment under its stated real estate strategy. The financing package led by Kayne Anderson and arranged by capital markets advisors clears a major funding hurdle for the project and positions the team to move into vertical construction once final permits and site work are complete.
Design and construction notes
Exterior façades will emphasize large operable windows and durable finishes suited to Passive House performance. The project keeps historic streetfronts while concentrating taller massing behind them, placing primary building entries and public spaces in the restored 19th‑century structures to promote active street life.
What to watch next
- Definitive construction start date and updated schedule from the development team.
- Final affordable unit count and lottery or application details once the city approves income targeting.
- Permits and job‑site milestones such as foundation work and podium erection.
- Any changes to Passive House certification scope or phasing between residential and commercial systems.
FAQ
What is One Third Avenue?
One Third Avenue is a planned mixed‑use tower in Downtown Brooklyn featuring apartments, elevated office space, and street‑level retail. It forms part of the broader Alloy Block development.
How tall will the building be?
The tower is reported at roughly 730 feet and is described in planning materials as a high‑rise of about 63 stories. Some documents list the height slightly lower (around 725 feet).
How many apartments will it include?
The project is reported to include 583 apartments, with just over 150 units designated as affordable (sources show either 152 or 153 affordable units).
Who is financing and developing the project?
Alloy Development and the Vistria Group are the developers. The financing package totals $535 million, with Vistria providing more than $120 million in equity and Kayne Anderson providing roughly $375 million in debt. Capital raising was arranged by JLL Capital Markets.
What are the Passive House features?
The design emphasizes an airtight, well‑insulated envelope, filtered fresh‑air ventilation, oversized operable windows, and shared energy systems to reduce waste heat and improve overall efficiency. The project aims for Passive House certification at high‑rise scale.
When will construction start and finish?
Demolition has already started. Public reports include differing schedules: some references expect construction to begin in the fall, while others list a summer 2025 start with completion around 2028. A definitive start date will come from the developer’s construction notices and permit filings.
Key features at a glance
| Feature | Detail |
|---|---|
| Developers | Alloy Development; Vistria Group |
| Financing | $535M total — >$120M equity (Vistria); ~$375M debt (Kayne Anderson) |
| Height / Stories | Approximately 730 ft; ~63 stories |
| Residential units | 583 apartments (152–153 reported affordable units) |
| Office space | ~60,000 sq ft in a six‑story elevated podium (100 ft above street) |
| Retail | ~30,000 sq ft on Third Avenue |
| Sustainability | Passive House design: airtight envelope, filtered fresh air, large operable windows, shared energy systems |
| Historic work | Adaptive reuse of two 19th‑century buildings on State and Schermerhorn Streets |
| Related development | Part of the Alloy Block — follows 505 State Street and two Passive House public schools |
| Projected timeline | Demolition started; construction expected either in the fall or summer 2025; potential completion around 2028 (schedules vary) |
Deeper Dive: News & Info About This Topic
Additional Resources
- Brooklyn Eagle: Alloy secures $535M for Brooklyn Passive House tower
- Wikipedia: Passive house
- 6sqft: World’s tallest Passive House building in Brooklyn secures $535M in financing
- Google Search: One Third Avenue Alloy Passive House Brooklyn
- ConnectCRE: Passive House project in Brooklyn closes on $535M financing
- Google Scholar: Passive House skyscraper Brooklyn
- Dezeen: Passive House skyscraper on Third Avenue, Brooklyn — Alloy
- Encyclopedia Britannica: Passive house
- Bloomberg: Brooklyn gets NYC’s first Passive House–certified school building
- Google News: One Third Avenue Passive House Brooklyn
