Alloy Development secures $290m
in financing for 505 State St.

Brooklyn, NY Alloy Development (Alloy) has secured $290 million in permanent financing for 505 State St., New York City’s first all-electric skyscraper, located at the intersection of State St. and Flatbush Ave. The financing, provided by New York Life Real Estate Investors, replaces a $210 million construction loan from Goldman Sachs and Related Companies while establishing Alloy as the building’s sole equity stakeholder, taking out preferred equity partner Ares Management. Financing was arranged by JLL, with a team led by Chris Peck, Peter Rotchford and Nicco Lupo.

505 State St. is part of the first phase of the Alloy Block, a mixed-use development designed by Alloy that will comprise five old and new buildings and provide residential, office, and retail space, as well as the city’s first two public schools designed to meet Passive House standards. Construction on the 44-story tower began in July 2021 and was completed in July 2024. Powered by 100% renewable solar energy from two local community solar developments, the building features 441 rental apartments, including 45 affordable units, and is now 85% leased.

Once complete, the Alloy Block will be home to roughly 1,000 residences, including approximately 200 permanently affordable apartments, 60,000 s/f of class A office space, 50,000 s/f of retail space, and two Passive House public schools. 

“Today’s announced refinancing marks a significant milestone for the Alloy Block, which, when fully completed, will bring much-needed housing, office, retail, and educational spaces to the heart of Downtown Brooklyn,” said Alloy CEO Jared Della Valle. “Since 505 State St. residential leasing launched earlier this year, we’ve seen an unprecedented unit absorption, highlighting the demand for sustainable, high-quality living while reaffirming our vision behind this transformative project. We are deeply grateful to our partners who made this refinancing possible and look forward to advancing the Alloy Block as we move forward into Phase Two.”

At 505 State St., residents are redefining green living with apartments that replace all functions typically run by natural gas with electricity. Each of the building’s 441 apartments, including the 45 income-restricted units, feature induction cooktops, heat-pump dryers, and fully electric base-building systems like hot water heating and HVAC, which eliminate carbon emissions across the building and promote healthier indoor environments. 

Beyond its environmental benefits, the building sets a new standard for designed living downtown. The apartments have exposed nine-to-twelve-ft. concrete ceilings, engineered oak wood flooring, and energy-efficient windows that flood the spaces with natural light and views. Custom-designed Italian kitchens are equipped with fully integrated cabinetry, silestone countertops, tile backsplashes, wall ovens, concealed recirculating hoods, integrated refrigerators, dishwashers, and microwaves.

505 State St. is also leading the way for energy-efficient, transit-oriented development, with more than 200 bike parking spaces and no parking for cars. Located adjacent to Atlantic Terminal, the city’s second-largest transit hub, the Alloy Block is next to the Brooklyn Cultural District and Barclays Center and bounded by Flatbush Ave., Schermerhorn St., Third Ave., and State St. It was approved through the City’s Uniform Land Use Review Procedure in September 2018.

Along with 30,000 s/f of retail space, 505 State St. is next door to two schools designed by Architecture Research Office – the new Khalil Gibran International Academy and a new public elementary school, PS 456, The Elizabeth Jennings School for Bold Explorers. Developed in collaboration with the NYC Educational Construction Fund, each school will meet the rigorous energy efficiency and indoor quality standards that qualify for Passive House certification–the first two public schools to do so in the city.