The Real Deal New York

Alloy Development and Davis Companies move ahead with Dumbo condo conversion

Bank OZK provided $61M in financing for 42 and 50 Jay Street
March 07, 2019 05:30PM

Jared Della Valle of Alloy Development and 42-50 Jay Street (Credit: Van Alen and Google Maps)

Alloy Development and the Davis Companies are moving ahead with their plan to convert two Dumbo properties into luxury condominiums, closing this week on the acquisition and financing.

The developers paid $52.3 million to buy 42 and 50 Jay Street from Phoenix House, a nonprofit addiction treatment and rehabilitation center, in a deal that closed Wednesday, Crain’s reported.

Meanwhile, Bank OZK provided a $61 million construction and acquisition loan for the project, Commercial Observer reported.

Alloy and the Davis Companies plan to turn the two buildings into a 46-unit complex, expecting to complete the conversion by 2021, according to Crain’s.

“We’ll restore the exposed brick and timber—which with the ceiling heights will give the apartments a beautiful loft feel,” Alloy’s president A.J. Pires told Crain’s. “The two buildings create an interesting mix of apartment types.”

The developers want to add on two floors to 42 Jay Street, which stands at seven stories tall, as well as a penthouse level to the five-story-tall 50 Jay Street.

The properties have been on the market since January 2018, and in July The Real Deal reported the properties were in contract for more than $50 million.

HFF negotiated the financing and an equity partnership between Alloy and the Davis Companies.

— Mary Diduch [Crain’s, CO]