We spent $104 million turning an abandoned 19th-century college in NYC into luxury apartments—take a look inside

Developers People Restoring Communities and Avenue Realty Capital have successfully transformed the long-neglected former St. John's College campus in Brooklyn into "The Hartby," a 205-unit luxury apartment building, including 62 affordable units. The $103.6 million project, financed through a $72.1 million construction loan and $31.5 million in private equity, operates on a 99-year ground lease from the adjacent St. John the Baptist church. With leasing commenced in April, the property is currently 50% occupied and 70% leased, projecting full occupancy by September, showcasing a successful adaptive reuse strategy for urban historical assets that integrates community benefit with market-rate development.

Analysis

The Hartby development in Brooklyn represents a successful case study in urban adaptive reuse, financed through a private-public structure. The project, capitalized with a $103.6 million blend of a $72.1 million construction loan and $31.5 million in private equity, transformed a derelict historic college into a 205-unit residential building. A key structural element is the 99-year ground lease secured from the St. John the Baptist church for $3.7 million, which provides a long-term income stream to the church and reverts the asset back upon lease expiration. The project's rapid leasing velocity, achieving 70% leased and 50% occupancy since its April launch with a projection for full lease-up by September, signals strong market absorption and validates the developers' strategy. Furthermore, the integration of 62 affordable housing units (approximately 30% of the total) demonstrates a viable model for satisfying community and regulatory objectives while developing a profitable market-rate asset with rents up to $6,950 per month.

Key Decisions for Investors

• Private equity and real estate investors should view this project as a successful template for urban adaptive reuse, noting the value unlocked through creative ground lease structures and the integration of affordable housing components to gain community and municipal support.
• The rapid leasing velocity, reaching 70% leased in approximately four months, is a critical performance indicator; investors should prioritize development partners who demonstrate a strong track record in post-construction marketing and lease-up to de-risk assets quickly.
• The financing mix of bank debt and private equity, alongside a specialized tax lot division, highlights a viable capital structure for complex redevelopments, offering a model for investors in both private credit and equity funds focused on real estate opportunities.