Rendering: One Third Avenue Passive House tower with preserved historic façades and elevated office podium.
Downtown Brooklyn, New York, August 28, 2025
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 Development and the Vistria Group have closed on $535 million in construction capital to build One Third Avenue, a large mixed‑use tower planned for Downtown Brooklyn. The project is billed as a tall Passive House building that will contain 583 apartments along with offices and retail space. The financing package combines an equity commitment in excess of $120 million from Vistria and $375 million in debt financing from Kayne Anderson Real Estate.
The capital raise was organized by a commercial real estate capital team. The funding split leaves Vistria as the major equity backer and places the bulk of the construction debt with Kayne Anderson. This is the first ground‑up development investment made by Vistria under its real estate strategy. Developers say the financing is the key step that enables the project to move from site work into full construction.
The tower is described in planning materials as roughly 730 feet tall (other planning references list about 725 feet / 220 meters). It is planned as a roughly 63‑story skyscraper. Residential floors are set to occupy levels 11 through 60, delivering a total of 583 apartments intended as a mixed‑income offering.
The project includes a six‑story podium that will contain about 60,000 square feet of office space raised approximately 100 feet above street level, and a new structure on Third Avenue with roughly 30,000 square feet of retail space. The development also calls for the adaptive reuse of two 19th‑century buildings on State Street and Schermerhorn Street; the tower will rise from an interior courtyard behind those historic façades. A residential lobby will be sited in the State Street building, while a commercial lobby and a public plaza will activate Schermerhorn Street.
One Third Avenue is being designed to meet stringent Passive House standards. Key elements include a very airtight, well‑insulated building envelope, filtered fresh‑air systems, oversized operable windows sized at about 6 by 7.5 feet to boost daylight and views, and shared energy systems that allow residential and office spaces to re‑use waste heat. Developers say these measures aim to cut energy demand and raise indoor comfort. Project materials claim the finished tower will surpass an existing 40‑story Passive House building in Vancouver to become the tallest Passive House‑certified tower in the world.
The residential program is mixed income, with the developer reporting around 152 to 153 affordable apartments in different documents. Affordable units are reported to begin at rents of about $1,023 per month. The project sits as the follow‑on phase and final piece of a larger master plan known as the Alloy Block.
One Third Avenue is described as the second phase of the Alloy Block, a five‑building complex that will ultimately include more than 1,000 homes, the city’s first all‑electric skyscraper, and two Passive House public schools. The Alloy Block received city council approval in 2018 and construction first began in 2021. The first phase is a 44‑story tower at 505 State Street with 441 apartments, including 45 affordable units, and amenities such as a gym, yoga studio, grow room, rooftop pool and terraces. Market‑rate leasing for that tower began in January 2024.
Demolition work on the One Third Avenue site began earlier this year. Public materials list differing timelines for the start of full construction: some project statements anticipated work beginning in the coming fall, while other planning documents forecast a summer 2025 start and a completion date in 2028. Developers describe the recent funding close as clearing a path to begin vertical work, subject to final permits and contractor mobilization.
Delivering Passive House performance at this height and scale is described by project leaders as technically demanding. The team plans to retain two historic street‑front buildings while building the tower behind them, adding complexity to the construction sequence. If built as planned, the tower would be one of the tallest buildings in Brooklyn and a high‑profile addition to the borough’s skyline.
With construction capital in place, the developer team will move to finalize permits, select a construction lender draw schedule, and award major construction contracts. The project will proceed under close energy‑efficiency standards and is expected to track toward Passive House certification once systems and envelopes are complete and tested.
One Third Avenue is a planned mixed‑use tower in Downtown Brooklyn that combines residential units, office space and street‑level retail while retaining two historic buildings.
The tower is planned at about 725–730 feet, roughly 63 stories by current design documents.
The project is planned to include 583 apartments in total, with around 152–153 affordable units reported in different project materials.
Financing includes a total of $535 million in capital: more than $120 million in equity from the Vistria Group and $375 million in construction debt from Kayne Anderson Real Estate.
Passive House design focuses on a very airtight, well‑insulated envelope, controlled fresh air, and systems that cut heating and cooling demand. The project also plans oversized operable windows and shared energy systems to boost efficiency.
Demolition has begun. Public schedules vary: some materials expected construction to start in the coming fall, while other planning documents list a summer 2025 start and a 2028 completion.
One Third Avenue is the second phase and final piece of the Alloy Block, a five‑building development that includes more than 1,000 homes, an all‑electric tower built in the first phase, and two Passive House public schools.
| Feature | Detail |
|---|---|
| Project name | One Third Avenue |
| Developers | Alloy Development and the Vistria Group |
| Construction financing | $535 million total (>$120M equity from Vistria; $375M debt from Kayne Anderson) |
| Height / stories | About 725–730 ft, roughly 63 stories |
| Residences | 583 apartments; 152–153 reported affordable units; rents for affordable units reported starting near $1,023/month |
| Office space | 60,000 sq ft in a six‑story podium, elevated ~100 ft above street level |
| Retail | About 30,000 sq ft on Third Avenue |
| Passive House features | Airtight envelope, heavy insulation, filtered fresh air, oversized operable windows (~6 x 7.5 ft), shared energy systems |
| Schedule | Demolition started earlier this year; various start dates reported (fall near‑term vs. summer 2025); possible completion by 2028 |
| Context | Second phase and final piece of the Alloy Block, which includes over 1,000 homes and two Passive House public schools |
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