Domain Cos. Lands $176M Construction Loan for Brooklyn Project
Bank OZK provided the financing for a 360-unit high-rise community in the Gowanus neighborhood.
Domain Cos. has landed $176 million in construction financing to build its 360-unit community in Brooklyn’s recently-rezoned Gowanus neighborhood. Bank OZK provided the loan, which will be used for the ground-up development of 420 Carroll St. JLL represented Domain Cos. to arrange the construction financing.
The Class A project has a total capitalization of $295 million and calls for the construction of a 20-story tower along with a 15-story building where 25 percent of the apartments will be designated as affordable. The community will also include approximately 27,500 square feet of commercial and retail space, including 7,700 square feet of Gowanus Mix space that stems from the area’s recent rezoning. Domain Cos. is also targeting a LEED Gold certification for 420 Carroll St.
When completed, the community will directly connect to the Gowanus Canal promenade. The residential project will also be four blocks away from the Carroll Street subway station, which offers residents access to the MTA’s F and G lines.
MAJOR REZONING FOR GOWANUS
Domain Cos. first acquired the property in February 2018 when it was a 65,000-square-foot commercial building. The developer purchased 420 Carroll St. from Property Markets Group for $47.5 million as part of the “Bridging Gowanus” community planning and land use process that was part of the rezoning process.
A few years later, Domain Cos. started work on the community with a scheduled completion in December 2024. The developer partnered with Vorea Group, who is the project’s construction manager, but also tapped Mega Development as the general contractor and FX Collaborative and Studio Mainer as the project’s architects.
According to Domain Cos., 420 Carroll St. will be the first new multi-housing property to be built since the major rezoning of Brooklyn’s Gowanus neighborhood. The plan called for 82 blocks of Gowanus to be rezoned to offer more opportunities to build affordable housing. While 420 Carroll St. is the first project, the rezoning is expected to bring approximately 8,200 new apartments to the area by 2035, 3,000 of which are expected to be permanently affordable.