Church seeks court approval for $12.4M deal with MDG Design for Ft. Greene affordable

A church filed a petition yesterday in Brooklyn State Supreme Court seeking court approval for a $12.4 million deal with MDG Design + Construction that includes a 99-year ground lease for the development of a 104-unit Fort Greene affordable housing project. The new construction will include a commercial condo for the church. Such a petition is a required step for nonprofits which sell or lease significant assets.

Hanson Place Church Support is signing a 99-year ground lease at 142 South Portland Avenue with developer MDG affiliate Metropolitan Real Estate Development (with principals Michael T. Rooney, Nicola Deacetis, Matthew Rooney and Michael Rooney Jr.). “In summary, [the church] shall receive (i) $977,972.00 cash at Construction Loan closing; (ii) ground lease rent at a net present value of $2,318,039; (iii) a Community Facility with a construction value of $5,485,032 and a land value of $1,992,375; and (iv) a portion of the Developer Fee at net present value of $1,501,549. The foregoing consideration is fair and reasonable because it is approximately the same amount as the pre-upzoned value of the Property which is $12,420,000. The pre-rezoned value of the Property is being considered because Developer, not Petitioner, took the risk and made the financial commitment to effectuate the change from a R7A District to a R8A District for the Property. Developer expended approximately $955,781.16 on this process as more fully discussed in its affidavit annexed hereto asExhibit T.”

The 13-story affordable housing will have two groups of apartments, one with 61 units up to 60% of the area median income and another with 43 units allowing for 61% to 120% of area median income. COURT LINK