A shuttered supermarket site in Sheepshead Bay has changed hands for $37 million, and the buyers are planning an affordable housing project. Gilbane Development and Habitat for Humanity acquired the 30,000-square-foot retail building at 2185 Coyle St., with plans to build 470 affordable apartments on the site.
The sale works out to roughly $1,233 per square foot, according to CoStar, which reports the project is envisioned as a nine-story mixed-use affordable housing development replacing the former supermarket building. The deal was arranged by Ariel Property Advisors, according to Connect CRE, which reported the site offers 408,400 buildable square feet on a 96,000-square-foot lot. The outlet also noted the property had recently been rezoned, calling it ideally suited for large-scale affordable housing. The sellers were a joint venture between AAG Management and ABS Partners, per the same report.
What the Original Rezoning Proposal Promised
The redevelopment plan traces back to a rezoning proposal reviewed by the New York City Council's Subcommittee on Zoning and Franchises in January 2025, which described a mixed-use residential building paired with a supermarket. At that time, the proposal called for more than 400 apartments, with between 20% and 25% permanently affordable, according to citymeetings.nyc.
A deep-affordability option discussed at that same hearing would cap eligibility at families earning up to 40% of area median income — about $62,000 for a household of four. The subcommittee record also shows the proposal included a zoning map amendment and a zoning text amendment establishing a mandatory inclusionary housing area, with recommended modifications replacing the requested R7A district with R6A along Coyle Street and the requested R7X district with R7D along Avenue V.
Not every planning document tells the same story on unit counts. An earlier filing from the Brooklyn Borough President's office described a proposed nine-story building with 435 dwelling units, including 109 affordable under Mandatory Inclusionary Housing — a different figure than the 470 apartments now cited in connection with the Gilbane and Habitat for Humanity plan. The reason for the discrepancy between the two counts has not been independently verified.
Other Coyle Street and Avenue V Projects Nearby
The Coyle Street corridor has seen other affordable housing activity. On October 26, 2021, Community Board 15 voted 28 to six to approve a separate proposal at 2134 Coyle Street, a five-story, 144-unit building that would include 43 affordable units alongside 101 market-rate apartments and 195 parking spaces, according to Brownstoner. That project's affordable units were broken down as 13 at 80% of area median income, 11 at 60% AMI and eight at 40% AMI, per the same report.
A few blocks away, a nine-story mixed-use development at 3033 Avenue V was approved after the NYC Mayor's Office issued no veto, Bldup reported. That proposal included 27 affordable housing units and required demolishing a single-story commercial building that had housed several retail shops, according to Bldup.
The Coyle Street deal also lands amid a citywide slowdown in affordable housing production. The mayor's office said the city financed the creation and preservation of 12,491 affordable homes in the first half of 2026, according to City Limits. Details on the 2185 Coyle Street project's construction timeline, financing and permitting status have not been disclosed.
