ODA-designed Crown Heights rental with 328 apartments secures $135M in financing
Rendering courtesy of ODA Architecture
The Crown Heights rental development that drew the ire of residents for replacing an Associated Supermarket is moving forward. The Hudson Companies on Monday announced it closed on $135 million in financing for the mixed-use project at 975 Nostrand Avenue, a new nine-story development with 328 apartments. As part of a deal reached in 2021, a grocery store run by the same manager of the previous store will take up about 20,000 square feet at the new building.
Designed by ODA Architecture, the team behind several residential projects in New York City, 975 Nostrand Avenue sits between Montgomery Street and Empire Boulevard, at the border of southern Crown Heights and Prospect Lefferts Gardens. Prospect Park and the Brooklyn Botanic Garden are just a few blocks west.
Midwood Investment & Development announced plans to redevelop the site as a mixed-use project in 2021 and gave the Associated Supermarket, a neighborhood staple for three decades, 30 days to vacate. Local residents rallied to save the grocery store and a deal was later struck between the owner of the Associated store and the developer to reopen at the new building.
That same year, Hudson Companies purchased the development site from Midwood for $41.5 million. According to Crain’s, Hudson Companies is utilizing the (now lapsed) 421-a tax break to build the project, allowing for 30 percent of the apartments to be below market rate. The affordable apartments will be set aside for families earning up to 130 percent of the area median income.
Expected to be completed by fall 2025, the development will target LEED Gold and EnergyStar standards. Amenities include an attended lobby, a fitness center with a yoga room, a karaoke room, a game room, a lounge, a community garden space, a library, a children’s room, and a landscaped courtyard. There will also be a bike room and an underground parking garage.
The new supermarket will be part of the NYC FRESH program to bring affordable and healthy food options to the neighborhood.
“At Hudson, we are committed to building quality homes for all residents across the city,” Marlee Busching-Truscott, managing director of development at Hudson Companies, said. “We’re thrilled to deliver 328 new apartments, a modern space for a beloved neighborhood supermarket, a community facility, and retail space right in the heart of Crown Heights.”
Financing was provided by Santander and Related and brokered by Gideon Gil, Zachary Kraft, and Sebastian Sanchez from Cushman & Wakefield’s Equity, Debt, and Structured Finance team, according to a press release.
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