Alafia Phase III Secures $217M for 273 Affordable Homes in Brooklyn
- ARCFE U.S.
- Jul 15
- 3 min read
Apex Building Group and L+M Development Partners have secured more than $217 million in financing for the third phase of Alafia, a large-scale affordable housing community in the Spring Creek section of East New York, Brooklyn.
Developed in partnership with RiseBoro Community Partnership and Services for the UnderServed, Alafia Phase III will include two residential buildings with a combined 273 affordable apartments. The phase is expected to be completed in 2029.
According to Commercial Observer, the financing package includes construction lending through Redstone Bank, funding from Goldman Sachs Urban Investment Group and support from New York State agencies.
New York State Homes and Community Renewal is supporting the phase through a combination of federal and state Low-Income Housing Tax Credits, tax-exempt bonds and state subsidy. The project will also receive NY-Sun incentives through the New York State Energy Research and Development Authority.
The two six-story buildings will be designed to Passive House standards and will use a geothermal loop system for energy-efficient heating and cooling. Plans also include a one-acre public park with a fitness loop, a children’s play area and landscaped residential courtyards.
Alafia is being developed on the former Brooklyn Developmental Center site at 888 Fountain Avenue. The broader redevelopment is expected to deliver affordable housing, healthcare and community facilities, retail space, public open space and urban agriculture across multiple phases.
Why Alafia Phase III Financing Matters for New York Real Estate
The Alafia financing shows how large housing developments can move forward through coordinated public and private investment. Bank financing, institutional capital, tax credits and state support are being combined to fund not only housing, but also energy-efficient buildings and public community space.
For clients following New York real estate, the practical takeaway is simple: a large financing package is most meaningful when it is connected to a clear construction plan, defined public benefits and identifiable sources of committed capital.
EB-5 Investor Insight
For EB-5 investors, Alafia Phase III offers two useful observations:
1. Multiple funding sources should fit together clearly
Projects with several financing sources can benefit from broader capital support, but investors should understand where each source sits in the capital structure and what role it plays in completing the development.
2. Financing milestones provide greater project visibility
A completed financing package can clarify how construction is expected to proceed. Investors should still review what funding has formally closed, the construction timeline and whether the available capital is aligned with the project budget.
Investors can learn more through ARCFE’s guide to the EB-5 Immigrant Investor Program.
ARCFE View
At ARCFE, we follow major financing and construction milestones across New York real estate to understand how projects move from planning into execution.
For investors, the most useful question is not simply how large the financing is, but whether the funding structure, development plan and construction schedule support one another.
Related ARCFE Resources
Review the immigration, travel, tax and residency considerations families should understand after receiving a conditional green card.
Learn how senior debt, mezzanine financing and equity differ in repayment priority and risk exposure.
Understand how investors can review project financing, construction readiness, job creation and reporting beyond the marketing presentation.
Interested in New York Real Estate-Backed EB-5 Opportunities?
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Complete the form and our team will follow up to discuss your EB-5 planning and current project options.
Official Sources
Primary Source: Commercial Observer — Redstone Bank, Goldman Sachs and New York State Provide $217M for Alafia
Official Development Announcement: L+M Development Partners and Apex Building Group — Alafia Phase III Financing
Official Project Information: L+M Development Partners — Alafia
Disclaimer: Articles published under the "News" category are curated from third-party media sources for informational purposes only. ARCFE does not claim ownership of the original content, nor does it guarantee the accuracy, completeness, or timeliness of the information presented. The views and opinions expressed in these articles are those of the original authors and do not necessarily reflect the position of ARCFE. Nothing contained herein constitutes investment, legal, or tax advice. Readers are encouraged to consult with qualified professionals before making any investment decisions.
