Developers have secured $500 million in funding for a new residential tower in Downtown Brooklyn that is planned to be the world’s tallest passive house building. Alloy Development announced it closed on $375 million in loans from Kayne Anderson Real Estate for the project, named One Third Avenue. Vistria Group will contribute $120 million in equity and take a majority stake as a limited partner, marking its first ground-up development. Alloy will remain as general partner and invest $40 million.
The 730-foot tower is designed to meet passive house standards, which focus on reducing energy consumption through enhanced insulation. This project represents the second phase of the broader “Alloy Block” development, which already includes New York City’s first all-electric skyscraper at 505 State Street and two public schools at 489 State Street built to similar energy-efficient standards.
One Third Avenue will feature 583 apartments, including 143 affordable units with rents starting at $1,023 per month for tenants earning about 60 percent of the area median income. The building will offer residential space from floors 11 through 60, along with a podium containing 60,000 square feet of office space. The development also incorporates two historic buildings from the 1800s on State Street and Schermerhorn Street, providing an additional 30,000 square feet of retail space.
Demolition at the site began earlier this year, with construction expected to start in the fall. Upon completion, Alloy Block is projected to include more than 1,000 homes overall—200 of which are designated as permanently affordable housing. The electric tower at 505 State Street was completed in July 2024. In December last year, developers refinanced by securing $290 million to replace a previous $210 million construction loan.
“According to Alloy, the 730-foot tower is slated to be the world’s tallest built to passive house standards, a design method aimed at cutting energy costs through extreme insulation.”
