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Atlantic Chestnut
Atlantic Chestnut
Atlantic Chestnut is an affordable housing development comprised of three interconnecting buildings across 4.5 acres in the Cypress Hills / East New York neighborhood of Brooklyn. Located on the site of a former fire-damaged industrial property, the development delivers 1,200 units of 100% affordable housing, reserved for households earning between 30-90% of area median income (AMI). A portion of units is set aside for formerly homeless New Yorkers.
The development also includes 4,630 square feet of community facility space. Amenities include several ground-floor amenity rooms, children’s playroom, exercise room, and package room. “The Ribbon,” a landscaped roof deck that connects all three buildings, provides walking paths and gardening plots for residents. The project meets all commitments established by New York City’s East New York Neighborhood Plan.
HSE served as deal counsel. Along with obtaining financing for the $850 million project was structured in phases that corresponded with the construction of each of the three buildings, HSE also developed the Shared Facilities Agreement to govern the development and maintenance of shared amenities like The Ribbon.
Phase I was financed through tax-exempt bonds issued by the New York City Housing Development corporation (HDC), a grant from the New York City Department of Housing Preservation & Development (HPD), and an equity investment and letter of credit from Wells Fargo Affordable Housing Community Development Corporation.
The $285 million Phase II financing was provided in the form of in tax-exempt bonds issued by HDC, Low-Income Housing Tax Credits (LIHTC) by HPD, and debt and equity issued by Goldman Sachs. The Low-Income Housing Tax Credits were purchased by the Urban Investment Group within Goldman Sachs Asset Management.
Phase III financing was provided through tax-exempt bonds issued by HDC, an HPD grant, developer equity, a letter of credit and debt from Citibank, and LIHTC purchased by the Urban Investment Group within Goldman Sachs Asset Management.
Developer: Phipps Houses
Architect: Dattner Architects
Contractor: Monadnock Construction
Number of Units: 1,200
Phase I Financing: HPD/HDC/Wells Fargo
Phase II Financing: HPD/HDC/Goldman Sachs
Phase III Financing: HPD/HDC/Citbank/Goldman Sachs