JLL arranged $176m construction financing for new Gowanus mixed-use development

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NEW YORK, August 17, 2022JLL Capital Markets announced today that it has arranged $176 million in construction financing for 420 Carroll St., a 360-unit Class A development in Brooklyn’s rezoned Gowanus neighborhood.

The total capitalization of the project is 295 million dollars. JLL worked on behalf of the borrower, Domain Companies, to secure the loan through Bank OZK. JLL also advised on the limited partner joint venture which closed in January. The partnership also includes Vorea Group, the construction manager. The general contractor is Mega Development, with designs from architects, FX Collaborative and Studio Mainer.

Located directly on the waterfront at the 1st Street Turning Basin, the 420 Carroll St. development will include a 20-story tower and an adjacent 15-story tower and will have a direct connection to the Gowanus Canal Parkway. The community will include approx. 27,500 square feet of commercial and retail space, including approximately 7,700 square feet of mixed Gowanus space as per rezoning. The development will allocate 25% of the apartments at affordable prices. Expected completion in December 2024, Domain is aiming for LEED Gold certification for the property.

The property borders the historic Carroll Street Bridge and sits across the Gowanus Canal from the only completed portion of the waterfront promenade that will eventually run the full length of the canal.

Located in a qualified opportunity area close to highly rated schools and the Smith Street commercial corridor, the development will be among the first to rise since 82 blocks of Gowanus were rezoned last year to meet demand of permanent affordable housing in a neighborhood with strong access to public transit. .

The site is four blocks from the Carroll Street subway station, served by the F and G lines, and four stops from Manhattan via the F line. It is three blocks from the Union Street station, served by lines D and R and one stop from the Atlantic terminal. By car, it is easily accessible to Manhattan via the Brooklyn Bridge or the Battery Tunnel.

JLL’s debt and equity advisory team representing the borrower was led by senior managing director Christopher Peck, director Nicco Lupo, senior managing directors Jeff Julien and Rob Hinckley and partner Jonathan Faxon.

Matt Schwartz of Domain Companies commented, “We couldn’t be more excited about the team we’ve assembled to move this project forward and provide much-needed mixed-use housing in New York City. We are incredibly optimistic about the future of Gowanus and excited to be part of this growing community.

JLL Capital Markets is a global, full-service provider of capital solutions for property investors and occupiers. The firm’s deep knowledge of the local market and global investors provides best-in-class solutions to its clients, whether it is sales and investment advisory, debt advisory, equity advisory or recapitalization . The firm has more than 3,000 capital markets specialists worldwide with offices in nearly 50 countries.

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