Breaking Ground and Douglaston Development close on Phase I of Sparrow Square

Brooklyn, NY The joint venture team of Breaking Ground and Douglaston Development marked the closing of Phase I of Sparrow Square, a milestone in the multi-phase project. The $242MM segment will advance the first stage of the East Flatbush project, which is part of the overarching Vital Brooklyn Initiative, a $1.4 billion program investing in housing, healthcare, and community development across Brooklyn. Hill West is the project architect, with Adjaye Associates serving as design architect.

Work to advance Phase I is underway. Levine Builders, the general contracting affiliate of Douglaston Development, is leading the construction efforts, which are expected to be completed in Q1 2029. 

“The closing of Phase I of Sparrow Square marks an exciting step toward delivering much-needed affordable and supportive housing for the East Flatbush community,” said Brenda Rosen, president and CEO of Breaking Ground. 

“In addition to more than 250 units of housing, this project will also bring wraparound services and stability that help people thrive. Breaking Ground is honored to work with Douglaston Development, Empire State Development, HCR, and all our committed partners to transform this long-underused campus into a place that will create lasting opportunities for our neighbors to build stable futures for decades to come.”

“Closing Phase I of Sparrow Square is a major milestone for our team and the Brooklyn community,” said Jeffrey Levine, founder and chairman of Douglaston Development. “This first phase delivers over 250,000 s/f of 100% affordable housing, supportive services, and a community facility, setting the stage for the broader multi-phase project. We are proud to work alongside Breaking Ground and our project partners to create long-term, transformative impact under the Vital Brooklyn Initiative.”

“Phase I represents a major step forward in our commitment to creating high-quality, affordable homes that strengthen the communities we serve,” said Liz Oakley, chief development officer at Douglaston Development. “By bringing new housing, cultural space, and improved connectivity to East Flatbush, we’re proud to help advance the goals of the Vital Brooklyn Initiative and support long-term neighborhood vitality.”

“Sparrow Square and the Vital Brooklyn Initiative will not only provide residents with critical housing solutions but also deliver essential services to help build a more resilient community for years to come,” said Dan Alger, head of the Urban Investment Group at Goldman Sachs Alternatives. “This development will play a pivotal role in fostering economic opportunity in Brooklyn and we are looking forward to helping bring it to life.”

Phase I will be comprised of two ten-story residential buildings that will deliver 261 affordable residences available to low- and moderate-income individuals earning up to 80% of the Area Median Income (AMI). Of the 261 residences, 117 units will be designated as supportive housing. Shared amenities will include a fully equipped gym, bike storage, and private terraces. In addition to the residences and amenity spaces, on-site supportive services will be available. Phase I includes construction of an 8,800 s/f community facility for the Brooklyn Ballet, designed to support arts programming and community engagement, as well as a new private drive (to be named Sparrow Way) aligned with 43rd Street to integrate the residential buildings and community facility into the surrounding street grid.

Each building will be sustainably designed to Passive House standards, with all-electric utilities and high-performing insulation. The project will also feature EV charging, sustainable stormwater management practices, solar panels, and green roofs as part of the design.

Phase I is financed through a combination of state tax-exempt bonds, HCR SHOP subsidy and 4% Low-Income Housing Tax Credits, with additional funding from Homeless Housing & Assistance Corporation (HHAC) and the New York State Office of Mental Health (OMH). Additionally, the Urban Investment Group at Goldman Sachs Alternatives is serving as the project’s investor and provided nearly $240 million in financing, comprised of 4% LIHTC equity and a letter of credit (LOC). The team also secured programmatic funding for the supportive units from the NYS Empire State Supportive Housing Initiative (ESSHI).

Phase I serves as the inaugural portion of Sparrow Square, a nearly $1 billion project that will deliver approximately 1,000 units of affordable and supportive housing for individuals, families, and seniors, as well as opportunities for affordable homeownership, publicly accessible green spaces, a community garden, and dedicated spaces for community empowerment programs.

The project was awarded through Empire State Development’s (ESD) competitive Request for Proposals (RFP) process, conducted in partnership with New York State Homes & Community Renewal as part of the Vital Brooklyn Initiative. A consortium of development partners, including Douglaston Development, Breaking Ground Housing Development Fund Corporation, Almat Urban LLC, Jobe Development Corporation, the Velez Organization, and Brooklyn Community Services, was selected to lead the redevelopment of the 7.2-acre campus. In total, the development is expected to create approximately 3,700 construction jobs, while providing a vibrant, environmentally sustainable, and inclusive community that supports health, wellness, and neighborhood vitality.