Downtown Brooklyn, New York, August 28, 2025
News Summary
Alloy Development and the Vistria Group closed a $535 million capital package to build One Third Avenue, a roughly 725–730 ft, 63‑story Passive House mixed‑use tower in Downtown Brooklyn. The financing pairs more than $120 million in equity with $375 million in construction debt. The project will include about 583 apartments (roughly 152–153 affordable), a six‑story elevated office podium, approximately 30,000 sq ft of retail, and adaptive reuse of two 19th‑century façades. Demolition is underway and construction is expected to proceed after permitting, with the scheme notable for applying Passive House standards at tall‑building scale.
Alloy and Vistria close $535 million to build One Third Avenue, a 730‑foot Passive House tower in Downtown Brooklyn
What just closed: Developers Alloy Development and the Vistria Group have closed a $535 million construction capital package for One Third Avenue, a new mixed‑use tower planned in Downtown Brooklyn that is being designed to Passive House efficiency standards and will include hundreds of homes, offices and street‑level retail.
Key financing and partners
The capital stack totals $535 million. The Vistria Group is committing more than $120 million in equity. A separate lender is providing $375 million in debt financing. Capital raise work was managed by a capital markets team acting on behalf of the project.
Project scale and program
One Third Avenue is proposed as a high‑rise mixed‑use project rising roughly 725–730 feet (some reports list 725 ft, others 730 ft) and is described in planning materials as about 63 stories. The building would deliver 583 apartments of mixed‑income housing. The number of affordable units is reported as 152–153 in different documents; affordable rents are noted to start at approximately $1,023 per month.
The residential portion is planned to occupy about floors 11 through 60. A six‑story podium will contain roughly 60,000 square feet of office space that is elevated about 100 feet above street level. Street‑facing components include a new structure on Third Avenue with about 30,000 square feet of retail. The design also calls for adaptive reuse of two 19th‑century buildings on State Street and Schermerhorn Street, with the tower rising from an interior courtyard behind those historic façades.
Passive House and sustainability features
The development is being designed to meet Passive House performance targets. Key elements cited in planning materials include a very airtight, well‑insulated building envelope; filtered fresh‑air systems; oversized operable windows sized at roughly 6 by 7.5 feet to maximize daylight and views while complying with energy targets; and shared energy systems between the residential and office program to capture and reuse waste heat.
If built to the stated performance and certification goals, One Third Avenue is positioned to become one of the tallest Passive House‑certified buildings in the world, surpassing a 40‑story Passive House tower in Vancouver. Within the local skyline, the new tower is reported to be the second tallest in Brooklyn upon completion, behind an existing taller residential tower.
Site context and Alloy Block
One Third Avenue is described as the final phase or second phase of a larger multi‑building development known as the Alloy Block. That block is a five‑building campus that together includes more than 1,000 homes, a previous all‑electric high‑rise, and two Passive House public school buildings. The Alloy Block plan received city approval in 2018 and construction on the wider block began in 2021.
Earlier work on the Alloy Block produced a 44‑story building at 505 State Street with 441 apartments and about 45 affordable units, plus amenities such as a gym, yoga studio, rooftop pool and terraces. Two Passive House‑certified public schools opened on the block in recent months; those schools occupy an ultra‑low‑energy building of roughly 146,000 square feet and were designed to meet strict efficiency requirements while sitting atop an old subway tunnel.
Schedule and next steps
Site demolition work began earlier this year. Reported schedules vary: one set of project statements anticipates construction beginning in the coming fall, while other planning materials indicate a start as early as summer 2025 with completion targeted around 2028. The project team has characterized financing close as the milestone that enables the next stage of permitting and mobilization.
Significance and context
The financing marks a first ground‑up development investment for one of the equity partners under its new real estate strategy. The project is being positioned by its developers as an example of large‑scale Passive House construction paired with mixed‑income housing and office space. Achieving Passive House targets at this scale has been described by the design team as technically challenging due to the building height, program mix and the need to integrate historic façades with high‑performance envelope systems.
What to watch for next
- Final reconciliation of affordable unit counts and official filings that lock down the number of deeply affordable units.
- Permitting milestones and a definitive construction start date following the financing close.
- Passive House certification progress and verification of energy and air‑tightness targets as construction proceeds.
- Delivery timeline for office and retail components and how the adaptive reuse of the historic buildings is integrated into street life.
Frequently Asked Questions
Q: Who is developing One Third Avenue?
A: The project is being developed by Alloy Development together with the Vistria Group.
Q: How much financing closed for the project?
A: Developers announced a total of $535 million in construction capital, including more than $120 million in equity from one partner and $375 million in debt financing.
Q: How tall will the tower be and how many apartments will it contain?
A: The tower is reported at roughly 725–730 feet tall and about 63 stories, with 583 apartments planned.
Q: How many affordable units are included?
A: Documents list 152–153 affordable units in different passages. Developers also note rents for the affordable tier beginning near $1,023 per month. Final, legally binding affordability commitments will appear in city filings and project agreements.
Q: What Passive House features are included?
A: The design includes a very airtight and insulated envelope, filtered fresh‑air systems, oversized operable windows sized around 6 by 7.5 feet, and shared energy systems to recover and reuse waste heat between programs.
Q: When will construction start and finish?
A: Reported schedules differ. Demolition has begun. Some statements expect a start in the coming fall; other schedules list a summer 2025 start and a 2028 completion. Watch for official permit filings and construction notices for confirmation.
Q: How does this project relate to the Alloy Block?
A: One Third Avenue is the final or second phase of the Alloy Block, a five‑building development that already includes more than 1,000 homes, an all‑electric tower, and two Passive House public schools.
Project summary table
| Feature | Detail |
|---|---|
| Project name | One Third Avenue |
| Developers | Alloy Development; Vistria Group |
| Financing closed | $535 million (≈ $375M debt, >$120M equity) |
| Height | ~725–730 feet (reports vary) |
| Stories | Approximately 63 |
| Total apartments | 583 |
| Affordable units | 152–153 (reported variance); rents from ≈ $1,023/month |
| Residential floors | 11–60 |
| Office space | ~60,000 sq ft in a six‑story podium elevated ~100 ft |
| Retail | ~30,000 sq ft on Third Avenue |
| Adaptive reuse | Two 19th‑century buildings on State Street and Schermerhorn Street |
| Passive House features | Airtight envelope; filtered fresh air; oversized operable windows (~6×7.5 ft); shared energy systems |
| Construction timeline | Demolition started; projected start ranges from coming fall to summer 2025; completion target ~2028 |
| Project role | Final/second phase of the Alloy Block, a five‑building development |
Deeper Dive: News & Info About This Topic
Additional Resources
- Brooklyn Eagle: Alloy secures $535M for Brooklyn Passive House tower
- Wikipedia: Passive house
- 6sqft: World’s tallest Passive House building in Brooklyn secures $535M in financing
- Google Search: One Third Avenue Alloy Passive House Brooklyn
- ConnectCRE: Passive House project in Brooklyn closes on $535M financing
- Google Scholar: Passive House skyscraper Brooklyn
- Dezeen: Passive House skyscraper on Third Avenue, Brooklyn — Alloy
- Encyclopedia Britannica: Passive house
- Bloomberg: Brooklyn gets NYC’s first Passive House–certified school building
- Google News: One Third Avenue Passive House Brooklyn
