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.
What happened: Alloy Development and the Vistria Group have closed a $535 million capital package to build One Third Avenue, a high‑rise mixed‑use project planned for Downtown Brooklyn. The financing combines more than $120 million in equity from Vistria with $375 million in construction debt provided by a single-lender arrangement. A commercial capital markets team managed the capital raise for the deal.
This development is planned as a Passive House certified tower rising roughly 725–730 feet (reports vary). It will contain approximately 583 apartments, a multi‑story office podium, retail space, and adaptive reuse of two 19th‑century buildings that front the street. Residential units will occupy the mid‑section of the tower while offices and retail will sit on a raised podium and at street level.
The project aims to be one of the tallest certified Passive House towers in the world when finished, and it will be a major addition to the broader Alloy Block master plan. The financing close is the first ground‑up development financed under Vistria’s real estate strategy. The design couples energy‑efficiency strategies with a large mixed‑income residential program, creating both market and affordable units on a single site.
One Third Avenue is planned with about 63 stories and residences on floors 11 through 60. The podium is a six‑story block providing about 60,000 square feet of office space, elevated roughly 100 feet above the street. Street‑level and storefront activity will be supported by roughly 30,000 square feet of retail in a new structure on Third Avenue. The tower is set back from the street and rises from an interior courtyard behind two retained 19th‑century buildings on State Street and Schermerhorn Street.
Those historic buildings will host lobbies and public space: a residential lobby in the State Street building and a commercial lobby with a public plaza on Schermerhorn Street. The project includes adaptive reuse of the two older structures rather than full demolition of those façades.
The development will deliver 583 mixed‑income apartments. Sources vary slightly on the affordable unit count; the project is reported to include either 152 or 153 affordable apartments. Affordable rents are reported to start at about $1,023 per month. The developer describes the scheme as a mixed‑income offering with a significant affordable component woven into the 583 units.
The design pursues Passive House certification at a tall‑building scale. Key features called out for the project include an airtight, well‑insulated building envelope, filtered fresh air systems, and oversized operable windows sized at approximately 6 by 7.5 feet. Mechanical and energy systems will share waste heat between residential and office spaces to improve overall efficiency. The developer notes that meeting Passive House standards on a project of this size presents substantial technical challenges.
Site demolition work began earlier this year. Public reporting includes two slightly different schedule signals: one account indicates construction was expected to begin in the fall following the financing close, while another notes an expected start in summer 2025 with completion projected for 2028. Given the timing variance across sources, the precise start date may depend on permitting, final contract awards and site mobilization after the financing close.
One Third Avenue is described as the final piece or a later phase of the five‑building Alloy Block development. The master plan already includes more than 1,000 homes, a tower that the developer marketed as an all‑electric high‑rise, and two Passive House public schools that recently opened as part of the complex. The first tower in the block delivered 441 apartments, including 45 affordable units, and offers a wide range of tenant amenities. The overall Alloy Block was approved by the city council and construction on the master plan began in 2021.
With construction capital secured, the project will move toward final permitting, contractor selection and site work. The schedule will firm up once builders are selected and permits are issued. Observers will track the project for its technical approach to Passive House at height, its affordable housing delivery, and its integration of old and new architecture in a dense urban block.
The total capital package is $535 million, comprised of more than $120 million in equity from the project equity partner and roughly $375 million in construction debt.
Reported height varies slightly by source, shown at about 725 to 730 feet with about 63 stories.
The building is planned to contain 583 apartments, with around 152–153 affordable units reported in different accounts.
Demolition has already begun. Reports indicate conflicting near‑term start windows, including a possible start in the fall after financing close or a start in summer 2025. A projected completion year reported for the project is 2028. Timelines may shift with permitting and procurement.
The design includes an airtight, well‑insulated envelope, filtered fresh air systems, oversized operable windows, and shared energy systems that transfer waste heat between uses, aiming to meet Passive House performance targets.
Yes. The scheme retains and adaptively reuses two 19th‑century buildings on State Street and Schermerhorn Street, placing the tower in an interior courtyard behind them and creating separate lobbies and public space within those preserved structures.
| Feature | Planned amount / detail |
|---|---|
| Financing | $535,000,000 total (≈ $120M+ equity; $375M debt) |
| Height | Approximately 725–730 ft; ~63 stories |
| Residential units | 583 apartments (≈152–153 affordable) |
| Residential floors | Floors 11–60 |
| Office podium | 6 stories; ~60,000 sq ft; elevated ~100 ft |
| Retail | ~30,000 sq ft at Third Avenue |
| Historic reuse | Adaptive reuse of two 19th‑century buildings on State and Schermerhorn |
| Passive House features | Airtight envelope, high insulation, filtered fresh air, oversized operable windows (~6 x 7.5 ft), shared energy systems |
| Projected timeline | Demolition underway; construction start reported as fall or summer 2025; completion cited as 2028 in some reports |
| Context | Final phase of a five‑building Alloy Block master plan with over 1,000 homes and two Passive House public schools |
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