MDG Design signs $269.9M ground lease with NYCHA, borrows $995M for acquisition, rehab in Canarsie

MDG Design + Construction through the entity Bay View PACT LLC paid $269.9 million to New York City Housing Authority through the entity New York City Housing Authority for the 1,610-unit residential elevator building (D3) at 9910 Seaview Avenue in Canarsie, Brooklyn. The expected use is cash flowing.
The deal closed on December 23, 2025 and was recorded on January 21, 2026. The property has 1,526,800 square feet of built space and 239,839 square feet of additional air rights for a total buildable of 1,763,525 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $176 and the price per buildable square foot is $153 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The signatory for New York City Housing Authority was Jonathan Gouveia . The signatory for MDG Design + Construction was Matthew Rooney . This is a 99-year Permanent Affordability Commitment Together, or PACT, deal.

The NYCHA Journal reported on the financing, putting the figure at $757 million in PACT renovations. Acris according to a PincusCo calculation shows $798.5 million from NYC Housing Development Corporation, but $21.8 million was a subordinate acquisition loan, so the total for rehab was $776.6 million, closer to the article’s figure. In addition, Fannie Mar provided a $196.45 million senior acquisition loan for the ground lease.

Prior sales, articles and revenue

Prior to this transaction, PincusCo has records that the buyer MDG Design + Construction purchased one property in one transaction for a total of $162.2 million and has no record it sold any properties over the past 24 months.
The seller New York City Housing Authority had not purchased any other properties and sold 87 properties in 10 transactions for a total of $531.3 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Richard Barnhart, head officer and Joel Gendels, agent. The business entities are Cornell Pace Inc and Oceanhill Ii Llc. The 1,526,800-square-foot property generated revenue of $36.4 million or $24 per square foot, according to the most recent income and expense figures.

The property

The residential elevator building with 1,610 residential units in Canarsie has 1,526,800 square feet of built space and 239,839 square feet of additional air rights for a total buildable of 1,763,525 square feet according to a PincusCo analysis of city data. The parcel has frontage of 1,135 feet and is 1,045 feet deep with a total lot size of 1,410,820 square feet. The lot is irregular. The zoning is R5 which allows for up to 1.25 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $168.3 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received 12 DOB violations, $10,930 in OATH penalties, and one housing litigation in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of two of the three commercial properties representing 1,687,122 square feet of the 1,710,326 square feet. The two identified owners are L+M Development Partners and Nyc Department Of Education.
There are no active new building construction projects on this tax block.

The majority, or 89 percent of the 1.7 million square feet of built space are elevator buildings, with specialty buildings next occupying 9 percent of the space.

The seller

The PincusCo database currently indicates that New York City Housing Authority owned at least 530 commercial properties with 161,793 residential units in New York City with 135,339,850 square feet and a city-determined market value of $11.4 billion. (Market value is typically about 50% of actual value.) The portfolio has $79.3 million in debt, borrowed from Breaking Ground. Within the portfolio, the bulk, or 97 percent of the 135,339,850 square feet of built space are elevator properties, with walkup properties next occupying 3 percent of the space. The bulk, or 34 percent of the built space, is in Manhattan, with Brooklyn next at 29 percent of the space.

The buyer

The PincusCo database currently indicates that Mdg Design + Construction owned at least 90 commercial properties with 4,513 residential units in New York City with 3,735,019 square feet and a city-determined market value of $259.4 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 58 percent of the 3,735,019 square feet of built space are walkup properties, with elevator properties next occupying 40 percent of the space. The bulk, or 40 percent of the built space, is in Brooklyn, with Bronx next at 32 percent of the space.

Direct link to Acris document. link