Alloy and Vistria close $535M to build One Third Avenue Passive House tower

Developers secure $535 million to build One Third Avenue, a 730‑foot Passive House tower in Downtown Brooklyn

Alloy Development and the Vistria Group have closed on $535 million in construction capital to build One Third Avenue, a tall mixed‑use tower planned for Downtown Brooklyn that is designed to meet Passive House performance standards. The capital package includes more than $120 million in equity from Vistria and $375 million in debt financing from Kayne Anderson Real Estate. JLL Capital Markets managed the capital raise.

What the project will be

The project is a high‑rise mixed‑use building rising roughly 725–730 feet and reported as about 63 stories in most descriptions. It will deliver 583 apartments across residential floors and include office and retail space. Residences are set to occupy floors 11 through 60. A six‑story podium will house about 60,000 square feet of office space elevated approximately 100 feet above the street. A new structure along Third Avenue will provide roughly 30,000 square feet of retail.

Affordable housing and unit mix

One Third Avenue will be a mixed‑income residential building. Reporting on the count of affordable apartments varies by source; materials list both 152 and 153 affordable units. Affordable rents are described as starting at about $1,023 per month. The full building total is consistently given as 583 units.

Passive House and sustainability features

The design targets Passive House certification and includes a tight, well‑insulated building envelope, filtered fresh‑air systems, oversized operable windows sized about 6 by 7.5 feet, and shared energy systems that circulate and reuse waste heat between residential and office areas. At this scale, achieving Passive House performance is described as technically demanding; the developer presents the tower as set to become the world’s tallest Passive House‑certified residential tower on completion, surpassing a previously certified high‑rise in Vancouver according to project materials.

Site, historic elements and public spaces

The tower will rise from an interior courtyard positioned behind two adapted 19th‑century buildings on State Street and Schermerhorn Street. The plan calls for adaptive reuse of those historic structures, with a residential lobby in the State Street building and a commercial lobby plus a public plaza facing Schermerhorn Street. Demolition work at the site began earlier this year to clear space for the new construction.

Schedule and process

Published timetables differ. Some project notes stated construction was expected to begin in the fall following announcement of the financing, while other timelines list a summer 2025 start with completion slated for 2028. The development team has framed the financing close as a key milestone ahead of vertical construction.

How this fits into the wider development

One Third Avenue is described as the final phase of the larger Alloy Block master plan, a five‑building complex previously approved by the city council. The Alloy Block already includes more than 1,000 homes, the developer’s earlier all‑electric skyscraper, and two recently opened Passive House public school buildings designed to be ultra‑low‑energy. The Alloy Block’s earlier phase at 505 State Street delivered 441 apartments, including 45 affordable units, and publicized amenities such as a gym, yoga studio, grow room, rooftop pool and terraces. Leasing for that earlier tower began in early 2024.

Development partners and financing roles

Under the capital plan, Vistria is leading the equity commitment as its first ground‑up development investment under a new real estate strategy. Kayne Anderson provided the bulk of the construction debt. JLL Capital Markets acted as placement agent to source and structure the financing.

Ranking and claims

Project materials claim the tower will be the tallest Passive House‑certified building globally when complete. Locally, the tower is reported to be the second tallest in Brooklyn upon completion, behind a taller mixed‑use building developed separately.

Next steps

With financing closed, the immediate next steps are final permitting, site preparation, and initiation of vertical construction according to the timetable the developers release. The project team will move forward on final design details, Passive House commissioning, and continued engagement with community and permitting authorities as work progresses.