Apex Building Group and L+M Development Partners secured $217 million in construction financing for phase three of the Alafia Project, a two-building residential complex in one of Brooklyn's lowest-income neighborhoods. Redstone Bank, Goldman Sachs, and New York State pooled resources to close the deal.
The financing combines private capital from Redstone Bank and Goldman Sachs with public support from New York State, reflecting the mixed-funding model increasingly common for affordable housing projects in expensive urban markets. The deal advances development in a neighborhood where median incomes lag citywide averages and housing costs consume disproportionate portions of resident income.
Apex and L+M have built a track record delivering mixed-income housing across the city. The Alafia Project targets renters earning 60 percent to 100 percent of area median income, positioning units between market-rate and deeply affordable tiers. Phase three's completion extends this supply into Brooklyn's outer boroughs, where gentrification pressure continues pushing long-term residents out.
The $217 million construction loan covers both buildings' vertical development, site preparation, and soft costs through stabilization. Redstone Bank and Goldman Sachs structured the debt to accommodate the project's mixed-income rent roll and lower-than-market returns typical of affordable housing. New York State's contribution likely included subsidy or loan guarantees reducing lender risk.
For current neighborhood residents, the project adds supply to a market chronically short of affordable units. For prospective renters, the 60-100 percent AMI targeting opens access to households earning roughly $50,000 to $85,000 annually, a demographic largely priced out of new Brooklyn construction. For Apex and L+M, the financing closes a critical gap between predevelopment and lease-up, unlocking equity and allowing capital recycling into future phases.