NYC Developers Obtain Financing for 1,000 Apartments
The building will complete the Gowanus Wharf development.
A joint venture between Charney Cos. and Tavros has obtained funding to acquire 175 Third St., the site of a planned fourth building in their jointly developed Gowanus Wharf project in Brooklyn. The project will include four multifamily communities, as well as retail and entertainment spaces. Once completed, this will be the largest building in Gowanus.
Silver Point Capital is providing $110 million in acquisition and development funding for the project, while Brodsky/Tikehau Capital is providing $35 million as a mezzanine lender to acquire the site for $160 million from developer RFR.
A JLL team led by Senior Managing Directors Christopher Peck and Peter Rotchford, Senior Director Nicco Lupo, Managing Director Lauren Kaufman, and Vice President Jonathan Faxon represented the borrowers in the transactions. Ackman-Ziff advised RFR on the sale.
Grand plans in Gowanus
Once completed, 175 Third Street will have about 1,000 residences. The development will also include a 37,000-square-foot publicly-accessible waterfront esplanade. Other buildings at Gowanus Wharf include Union Channel, Douglass Port at 251 Douglass St. and Nevins Landing at 310 to 340 Nevins St.
The Gowanus Wharf development is part of the revival of the Brooklyn neighborhood of the same name, which centers on the 100-foot wide, 1.8-mile-long Gowanus Canal. The canal, originally a 19th-century infrastructure development, had a legacy of industrial pollution in the 20th century before being named a Superfund site in the 21st. Under plans formulated by the U.S. Environmental Protection Agency, remediation of the canal is ongoing.
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Landscape architect James Corner Field Operations, whose works include the High Line in Manhattan, Fresh Kills Park on Staten Island and Domino Park in Brooklyn, will oversee design and landscaping of the development.
All together, Charney and Tavros will have developed and will own over 2 million square feet of commercial space and 2,200 residences in Gowanus when 175 Third Street is complete, which the developers say will make them the largest property owners in the neighborhood.
In 2021, the New York City Council approved the Gowanus Neighborhood Plan, which set the stage for mixed-use development within an 82-block stretch in the neighborhood. The rezoning provides an opportunity to provide much-needed housing in a central location, Hill West Architects Senior Associate Sean Dawson told MHN at the time.
Locally-based Charney owns, operates, develops assets in Brooklyn and Queens, while Tavros is a privately owned real estate investment management and development firm with an emphasis on New York City.
Brooklyn’s steady multifamily market
Demand for multifamily in Brooklyn is still strong and supply is not keeping up with it, as is the case in the rest of New York and a good many other markets. Even so, overall occupancy for stabilized assets in Brooklyn dropped 30 basis points year-over-year to 98.6 percent in October, Yardi Matrix reports. The national multifamily occupancy rate is 94.8 percent.
The average advertised asking rent for multifamily properties in Brooklyn edged down 0.2 percent in Q4 2024, according to the same data. This rate is roughly the same as the national trend. Rates had been rising in Brooklyn through much of 2024, but turned downward in the fourth quarter.
Developers completed 3,935 units in the borough during the first 11 months of the year, Yardi Matrix notes. The development pipeline includes about 28,000 units under construction and 32,000 units in the planning and permitting stages.
