$290M recapitalization arranged for Downtown Brooklyn residential tower

NEW YORK, Dec. 23, 2024 – JLL Capital Markets announced today that it has secured a $290 million recapitalization financing for 505 State Street, a premier 440-unit residential tower in Downtown Brooklyn, New York, and the first all-electric carbon neutral skyscraper in the city.

JLL worked on behalf of the borrower, Alloy Development, in arranging the five-year, fixed-rate senior loan through New York Life.

Alloy Development was founded by Jared Della Valle and Katherine McConvey in 2006 with the mission to make Brooklyn beautiful, sustainable and equitable. Since its inception, Alloy has developed over $1.1 billion in projects valued at over $1.6 billion. The company has a proven track record of delivering high-quality, luxury buildings that are visually stunning and environmentally responsible. Alloy is also at the forefront of sustainable development in NYC and nationally. In addition to earning numerous LEED certifications, 505 State Street is New York City's first all-electric residential tower. Alloy utilizes cutting-edge energy-efficient technologies and materials in all its developments, which significantly reduces their carbon footprint and promotes a more sustainable way of living.

Completed in 2024, 505 State Street features 318,589 rentable square feet, comprising 440 apartments and 28,752 square feet of retail space. The residential offerings include studios, one-, two- and three-bedroom units, averaging 659 square feet in size. Each apartment features high-end finishes like custom kitchens with induction cooktops, 9- to 12-foot exposed concrete ceilings, oak wood flooring and floor-to-ceiling windows that provide ample natural light. Instead of gas, all functions—including heating, hot water and cooking—are fully electric. Residents have access to a variety of amenities, including a large fitness center, yoga studio, rooftop pool, communal lounges, a screening room and dedicated workspaces.

505 State St. is located adjacent to the Atlantic Terminal, providing direct access to nine subway lines and the Long Island Rail Rd., ensuring exceptional connectivity throughout New York City. The area boasts a wealth of retail options, diverse dining and cultural attractions, all within walking distance, making it a commuter’s paradise. Downtown Brooklyn features a vibrant, educated population with household incomes averaging about $189,500 within a quarter-mile of the property.

JLL Capital Markets Advisory team representing the borrower was led by Senior Managing Director Christopher Peck, Managing Director Peter Rotchford and Director Nicco Lupo.

"505 State Street exemplifies cutting-edge sustainable development, reflecting the Sponsor's commitment to environmental stewardship in their communities," Peck stated. "This transaction demonstrates how thoughtful investment can yield both financial rewards and positive societal impact, particularly as sustainability becomes an increasingly crucial factor for lenders."

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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Alloy Development is committed to making Brooklyn beautiful, sustainable and equitable through innovative architecture and thoughtful development. As stewards of the communities where they live and work, Alloy sees opportunity in the diversity and complexity of urban contexts, using quality design to create enduring value. With over $1.6 billion in projects since 2006, including New York's first all-electric skyscraper and first passive house schools, the company challenges conventional practices to benefit both the social and built environments.

For more than 175 years, New York Life has been dedicated to helping people put love into action, upholding the highest standards of transparency, objectivity and integrity as a mutual company. Committed to improving communities through the New York Life Foundation and a culture of giving and volunteerism, the company values development, career growth, collaboration, innovation and diversity and inclusion. With numerous resources and programs, New York Life invites individuals to join their team, fostering personal and professional growth to help families and businesses "Be Good at Life."