The Real Deal New York

Pacific Park got a new low-income investor last year

535 Carlton has new backing
October 08, 2018 02:45PM

535 Carlton Avenue

Pacific Park’s 535 Carlton got a new investor last year.

The 298-unit building was developed by two entities, one in charge of the moderate- and middle-income units and another in charge of the 90 low-income units. The latter, the “Affordable Owner,” was taken over by a new “Investment Member” in July 2017, the Atlantic Yards/Pacific Park Report reported, citing a document from property records. That new investment member is called the U.S.A. Institutional 80-20 Tax Credit Fund VIII LP, an entity owned by an affiliate of the Richman Group and Tandem CDE, a subsidiary of Signature Bank that specializes in transactions involving the low-income housing tax credits.

The new investment member is making a capital contribution to pay back a $23.7 million loan that was provided to the affordable owner entity, the report said.

Elsewhere in Pacific Park, TF Cornerstone and the Brodsky Organization are taking over three development sites from Greenland USA and plan to build more than 1,000 new apartments. According to a previous report, the Brodsky Organization is buying the development lease at 664 Pacific Street, where it plans to build a 300-unit rental building.

At the beginning of this year, Forest City New York cut its stake in the Pacific Park megaproject to 5 percent. The move was a part of Forest City’s strategy to back away from risky ventures such as ground-up development. [Atlantic Yards Report] — Meenal Vamburkar