Brooklyn Development Lands $68M Loan

A group of four private individuals have scored a $68 million construction loan for their 130-unit multifamily development in Brooklyn, N.Y., The Commercial Observer reported. Meridian Capital Group arranged the debt-fund financing.

The Gowanus site sold for $29.5 million, according to The Real Deal, to three private individuals who are part of BridgeCity Capital, but are undertaking this project separately. The developers are going forward with plans submitted before the site traded. 

In fact, the project in place was already eligible for the 421a tax abatement program. It was also enrolled in the Gowanus PILOT program as a contingency, but the developers expect to complete the community well before the 421a deadline, set in 2026.

Meridian Senior Managing Director Morris Betesh alongside Vice President Omar Ferreira secured the loan.

The impact of Gowanus’ rezoning

Upon delivery, the 13-story community will also include 12,750 square feet of retail space. Located at 125 Third St., the site is close to various dining options. The Atlantic Center Mall, a 37-store shopping center, is less than 2 miles away. Kick Axe Throwing, an urban axe-throwing lodge rated the best Brooklyn nightlife attraction on TripAdvisor, is less than a mile away.

The project benefits from Gowanus’ rezoning plan, which is set to bring forth some 8,000 units by 2035, with more than a third being affordable, according to The Gothamist. Furthermore, $200 million have been earmarked for capital expenditures in Gowanus and Wyckoff Gardens, while $174 million will go toward improving Fourth Avenue’s sewage infrastructure.

North of 2,200 units were under construction in Brooklyn’s Boerum Hill-Gowanus submarket as of March, according to Yardi Matrix data. Society Brooklyn and Sackett Place will add 517 units to supply when Property Markets Group will bring the communities online in early 2025.