Project by: John Kanakas Luna Christensen, Syed Asghar, Benjamin Garst, Hannah Zhao
The Timber Hub is a proposed 11-story, 56-unit mixed-income rental development at 3918 4th Avenue in Sunset Park, Brooklyn — a 7,517 SF corner lot two blocks from the 36th Street N/R/D subway station. Structured on a 99-year ground lease to eliminate land acquisition costs, the project leverages New York City’s City of Yes for Housing Opportunity initiative, unlocking a 5.01 FAR under the Universal Affordability Preference (UAP) bonus — up from a 4.0 base — by dedicating 30% of units as permanently affordable at 80% AMI. The building is designed around a mass timber structural system, reducing embodied carbon by 30–40% versus concrete and structural costs by approximately 20%, while creating distinctive biophilic interiors that support a 5–8% market rent premium. Ground-floor retail spanning 7,517 SF activates both street frontages, generating approximately $461,000 in annual revenue. The project qualifies for the 485-x property tax exemption — a 35-year abatement that materially reduces operating expenses and improves NOI. Initial underwriting indicates a levered IRR of 27.38%, LP IRR of 24.79%, and a stabilized value of $35.0M at a 5.0% cap rate, on a total project cost of $20.99M capitalized with a 65% LTC senior construction loan and $6.9M of equity.
