500 Stagg Street
On October 16, 2019, Evergreen successfully closed on the purchase of 500 Stagg Street in Brooklyn, its fifth building. The property is a 10,000 square foot warehouse that will be renovated into a multi-tenant manufacturing facility for three small businesses. This project was made possible through a combination of funding sources and partners.
New York City Economic Development Corporation (EDC) contributed a significant grant of $4.8 million to cover the costs of acquisition through its Industrial Developer Fund program. The construction is being funded by grants from New York City Council Member Antonio Reynoso’s capital budget and New York State Empire State Development. In addition to the grants, Evergreen is fortunate to be working with a community-minded lending institution in Local Initiatives Support Corporation (LISC), which has provided critical loan financing. Finally, also through EDC, the project is receiving several significant Industrial Development Agency program benefits. Evergreen is extremely grateful for these contributions, as the cost of purchasing and renovating affordable manufacturing space in North Brooklyn is otherwise impossible.
Other key collaborators include the consultants at BJH Advisors who have helped guide the project every step of the way, the legal team of attorneys at Seyfarth Shaw, matched with us through Lawyers Alliance, that have provided top shelf, invaluable oversight on a pro bono basis, and the Association for Housing and Neighborhood Development, who have advocated around industrial development and together with Citi Community Foundation, provided a grant for pre-development costs. The prior owners include Michael & Steven Levy Realty, the broker was Matthew Kaplon of Kaplon Belo Realty, and Evergreen has hired Philip Toscano Architect for the design process. All three are members of Evergreen and have a long history in the community.
In keeping with Evergreen’s mission and aligned with the requirements of the funding sources, this project will provide a significant economic development benefit to North Brooklyn. There is a restrictive declaration guaranteeing exclusive use by manufacturing businesses. Evergreen will offer affordable rates that must be at least 20% below market value and is committed to creating one new full-time job per 1,000 square feet of space, at minimum. When factoring in the jobs retained by businesses that will relocate, the projection is that 500 Stagg will house at least 20 jobs. The construction process will honor MWBE and prevailing wage requirements and be competitively bid out – providing additional economic benefits over the six months or so construction will last.
Construction is expected to be complete in Fall 2020. Evergreen is excited to deepen its mission with its first multi-tenant facility that will provide affordable space to multiple businesses and high-quality jobs to the community. Thank you to everyone involved with this special project.