The Doe Fund’s First Transitional Housing Residence to Undergo Major Upgrades

New York, NY— The Doe Fund announced that it recently financed 520 Gates Avenue in the Bedford-Stuyvesant neighborhood in Brooklyn. Located on the south side of Gates Avenue between Marcy Avenue and Tompkins Avenue, the building was completed in 1931 and contains approximately 19,900 sq. ft. on three floors plus a basement.

Since it was acquired by The Doe Fund in 1990, the building has served as a community facility via New York City’s Department of Housing Preservation and Development and the Department of Homeless Services. It is home to 60 men in 30 two-person rooms with ancillary offices, classrooms, and a commercial kitchen. The latest 20-year contract, executed in December 2019, includes capital funding to redevelop the site to address obsolete building systems, client quarters, and program space.

The Doe Fund received a $9.3MM loan from a consortium of lenders and Wells Fargo served as trustee of the lender group that included SLC Management, an affiliate of Sun Life. Some of the proceeds will be used to fund the soft costs (architecture, professional, and interest fees) associated with the future redevelopment of the 520 Gates Center for Opportunity, as well as recapitalize The Doe Fund by retiring debt and credit obligations.
The residence has been overwhelmingly embraced by its neighbors and supported by elected officials.

“I will never accept chronic homelessness and mass incarceration. We can break the cycles of poverty. That’s why I am fighting for this housing opportunity, which is a victory not just for Bed-Stuy, but for all New Yorkers in need. When we invest in The Doe Fund’s thirty-year track record of service, we provide a more secure future for our family, friends and neighbors—for our shared community,” said New York City Council Member Robert E. Cornegy, Jr.

“I’m proud to be part of funding the renovation and reimagination of 520 Gates Avenue, an important facility where The Doe Fund supports our neighbors in need,” said Brooklyn Borough President Eric Adams. “Holistic services like these are even more crucial during the difficult times facing our city. Ready, Willing & Able is a meaningful pathway to strong middle-class jobs and financial security for men facing homelessness and hopelessness, offering a helping hand in the climb up the ladder of opportunity.”

“New York City’s homelessness crisis has been exacerbated by the pandemic and we need affordable housing more than ever. The 520 Gates Avenue facility in Brooklyn will give those experiencing homelessness a place to live safely, humanely and comfortably. The Council is proud to fund and support this project, and we look forward to seeing 520 Gates at its completion. I am grateful to the Doe Fund for its endless support of New Yorkers in need,” said Speaker Corey Johnson.

Redevelopment of 520 Gates will be the second phase of a two-phase project. Phase one is the design and construction of a new 200-bed Center for Opportunity at 510 Gates Avenue, an adjacent property that The Doe Fund acquired this past May. Once that building is completed, the 60 clients in 520 Gates will be relocated to 510 and redevelopment of 520 Gates will begin.

George T. McDonald, Founder and President of The Doe Fund, said, “The Doe Fund’s experience operating, enhancing, and expanding our Gates Avenue residences is an example of how nonprofit homeless service providers, local residents, community boards, and elected officials can and should work together to achieve seamless integration into a neighborhood. We are tremendously grateful for the support of farsighted elected officials, the community board, and our lenders. Residents in and around our Gates Avenue building have always appreciated our presence and the efforts our men exert—not only to improve their own lives, but the community around them.”

“We’re very happy SLC Management is able to support The Doe Fund in its mission to break homelessness and recidivism cycles in the New York City area through this meaningful investment,” said Liz Thorne, Senior Director, Private Fixed Income, SLC Management. “Our investment provides 20-year, fixed rate debt financing and we’re looking forward to future developments at 520 Gates. Sustainable investing is a key strategic focus for us and we’re thrilled to be able to help drive positive change in the communities where we live and work.”