Canyon JV to Develop Brooklyn Community
The development will feature an entirely electric design and will be equipped with flood-resistant landscaping and plantings.
A joint venture between Canyon Partners Real Estate LLC, Tavros Holdings and Charney Cos. is set to develop a partly affordable community in one of Brooklyn, N.Y.,’s Qualified Opportunity Zones. The joint venture has plans to construct 585 Union St. and has tapped Fogarty Finger Architects to design the community.
The firms acquired the site in October 2019 and have since closed on a $107 million senior construction loan from Pacific Western Bank. The project also is being capitalized with $57.7 million in equity.
The 210,000-square-foot mixed-use development will offer 224 units in studio, one-, two- and three-bedroom units. The community will have 25 percent of its units designated as affordable and will have a fitness center, rooftop pool, basketball court, residential lounge, bike storage and parking. The developers are planning to incorporate ground-floor retail at the nine-story community, which will have 200 feet of frontage along Third Avenue and 230 feet of frontage along Union Street. The plans also call for 585 Union St. to be designed as entirely electric and will be equipped with flood-resistant landscaping and plantings.
Located in Brooklyn’s Gowanus neighborhood, the property is a block away from the Union Street subway station that gives residents an approximately 30-minute commute into lower Manhattan. Nearby, the community is also within walking distance to the Barclays Center, two Whole Foods locations, and several restaurant and retail options.
Capitalizing on Opportunity Zones
Nicholas Silvers, founding partner at Tavros, said in prepared remarks that Gowanus is one of the most exciting cultural hubs of New York City. The neighborhood is currently in the midst of a major rezoning effort that was approved in late 2021. The rezoning will see the neighborhood stretching 82 blocks evolve from its industrial roots into a live-work-play neighborhood with affordable housing, new office space and plenty of retail space.
For Canyon Partners, 585 Union St. is its 11th project within a Qualified Opportunity Zone. Last month, Canyon Partners completed a 219-unit community in Tigard, Ore., along with its joint venture partners, ScanlanKemperBard and Diamond Investment Group. The six-story project started construction in 2020 and is also located within an Opportunity Zone. Now, the firm’s portfolio of Opportunity Zone projects is $1.2 billion in total project capitalization.