The Real Deal New York

Gotham, DT Salazar get $278M in city funding for rental tower

December 30, 2013 02:30PM


250 Ashland Place rendering and Gotham’s David Picket

Developers the Gotham Organization and DT Salazar secured $278 million in financing for the construction of a 586-unit, 52-story residential tower on a vacant Downtown Brooklyn site formerly owned by the city, according to the city Department of Housing Preservation and Development.

The department, under Mayor Bloomberg’s New Housing Marketplace Plan, is providing full funding of the FXFOWLE-designed project at 250 Ashland Place. Of the total units, which range from one- to three-bedrooms, 282 will be affordable. There will also be 8,000 square feet of office space and 10,200 square feet of retail space along Fulton Street, a release said.

HPD provided the land to the developers at a nominal cost. Low-income housing tax credits are expected to generate $19.3 million in equity for the project. Wells Fargo, Capital One and TD Bank provided a $142 million loan to the city, as part of the total financing.

In October, a six-firm team of architects and developers were brought aboard to tackle the proposed mixed-use development site BAM North II on Lafayette Street between Rockwell Place and Ashland Place – another New Housing Marketplace Plan project. — Mark Maurer

  • phil

    so let me do the math,

    we get 282 affordable units here, and if you count all the other “affordable units” we get through special tax breaks here & there we come to around lets say 10-20 thousand more affordable units,

    how does this supply a market that is in desperate need of a couple of million affordable units ?????

    its time to restructure our housing laws which are the primary reason for these high rents in the 1st place

    NY and SF have the strictest rent laws in the nation and thus have the highest rents in the nation as well, so you get the opposite effect in you attempt to keep rents law by controlling the rent amounts as opposed to free up the system so more new developments can come up on the market and for once crash this crazy rent market

    • Brad

      Please walk us through the math. Not generalities, but specifics of how you think undoing rent laws would dramatically lower rents. I don’t see it.

      • phil

        for the same reason most other cities that doesn’t have these socialist rent laws, dont have rents this high,

        if you have a sizable amount of apts paying well below the market value simply because they have been living there for a while, that basically shortens the supply of avail. apts on the market,

        Its a simple supply/demand principle,

        and you tell me what positive effect this rent laws had on the market at large for the general population ??? rent laws are the strictest in the country and the rents are the “highest” in the country, so how can anyone claim that they kept rents low,

        • Crian Bashman

          Isn’t that based on the assumption that the number of stabilized units that would be deregulated is greater than the demand? The majority of stabilized units are in outer borough neighborhoods where the stabilized rents are similar to the neighborhood market rate rents.

          I think its a much more complex situation than a simple supply / demand analysis discussed in an econ text book. Especially if you are going to use the whole city to argue the elimination of rent stabilization laws that really only negatively affect (rent wise) a few select neighborhoods.

          • phil

            i didnt see in your comment any hint of advise as to how to tackle the problem (mandating a certain % in every development to be affordable housing, when the demand is a few thousand percent higher, is a joke….)
            so far the only effective way to reduce cost is by letting the supply rise,

            and so far there is no number-crunching individual who effectively brought down prices in any sector in the economy by being smarter then simple supply/demand economics,

            we have tried to build up projects and that turned out to be a failure (im not talking about crime), as it solves such a small portion of the problem,