Quinlan, GTIS Team Up for Brooklyn Tower

Brooklyn, N.Y.

Quinlan Development Group and GTIS Partners have formed a joint venture to acquire 374 Fourth Ave. in the Gowanus section of Brooklyn, N.Y., to develop a 213,000-square-foot mixed-use building with 197 residential units. The project is slated to be completed in the third quarter of 2024.

CIT, a division of First Citizens Bank, serves as the lead arranger on the construction financing. Citing New York City records, Commercial Observer reported Quinlan received a $73.4 million loan from the bank last month.

The JLL debt and equity advisory team representing the venture was led by Senior Managing Director Christopher Peck, Managing Director Peter Rotchford, Director Nicco Lupo, Senior Managing Directors Jeff Julien and Rob Hinckley, Senior Director Jillian Mariutti, Associate Phil Cadorette and Analyst Joy Ryoo.

OZ fund project

The project is one of 15 committed investments made to date by the GTIS Qualified Opportunity Zone Fund. The fund comprises approximately 2,500 multifamily units, 460 single-family rental units, 2 million square feet of industrial logistics space and 430 student housing units. Earlier, GTIS funds invested $180 million of equity in seven additional deals located in Opportunity Zones, all of which are now fully realized. In December 2020, GTIS Partners broke ground on a single-family, build-to-rent community in the Phoenix suburb of Mesa, Ariz. Located within Cadence at Gateway, a 400-acre master-planned development owned by GTIS and Harvard Investments, the project added 197 rental homes to the community. The project was believed to be the first Qualified Opportunity Zone investment for the SFR sector since the Opportunity Zone program began in 2018.

A global real estate investment firm in the Americas, GTIS Partners is headquartered in New York. The firm manages approximately $4.3 billion in real estate with a focus on residential and industrial and logistics investments in the United States.

Building details

The 17-story building will have ground-floor retail and parking. The residences will be a mix of one- and two-bedroom units, and 88 will have private terraces or balconies. The project will qualify for the Affordable New York program, which expired in June, and will deliver a significant number of affordable units. The number was not disclosed.

The building will feature a wide range of amenities including a fitness center, a gaming and media lounge, co-working spaces, a yoga studio, a golf simulator and a furnished rooftop terrace.

Located at the nexus of the Park Slope, Gowanus and Carroll Gardens neighborhoods, the property is near several subway lines. It is also close to dining and retail offerings in the Park Slope retail corridor and the green spaces of Washington Park and Prospect Park.

The site, a former taxi depot, is located in an area along the Gowanus Canal that was rezoned last year by the New York City Council as part of the Gowanus Neighborhood Plan. It was the largest rezoning under former Mayor Bill de Blasio’s administration and set the stage for mixed-use development within an 82-block stretch in the industrial neighborhood. The rezoning is expected to bring about 8,200 new apartments to the area by 2035.

In May 2021, Quinlan broke ground on a 17-story, 138-unit multifamily project in the Clinton Hill neighborhood in Brooklyn. CIT provided a $35.7 million construction loan for the development at 230 Classon Ave. The 143,000-square-foot mixed-income property is slated for delivery in the spring of 2023. Quinlan, a New York City-based multigenerational private investment and development company, specializes in value-add real estate opportunities. The company has developed about 3.5 million square of real estate including multifamily rentals, luxury condominiums and self storage facilities.