JL arranges $140m construction financing for latest mixed-use development in Gowanus
JLL Capital Markets announced today that it has arranged $142 million in construction financing for Majestic, a mixed-use Class A development with 255 multi-unit housing units and 18,000 square feet of retail space, located at 540 DeGraw St. in the rezoned Gowanus neighborhood of Brooklyn.
JLL worked on behalf of the borrower, a partnership between Domain Companies, Urban Investment Group within Goldman Sachs Asset Management, Vorea Group and Mega Development, to secure the loan through US Bank. The project team includes Handel Architects with landscaping by FutureGeeen. The total capitalization of the project is 230 million dollars.
Scheduled to be completed in 2025, the 12-story mid-rise building will allocate 25% of apartments at affordable prices. Domain is aiming for a LEED Platinum certification for the property and is working on a partnership with Arts Gowanus to provide dedicated studio space for local artists.
Positioned as Brooklyn’s first mixed-use property, Majestic will rise on the most prominent interior site located directly adjacent to Thomas Greene Park, the area’s only large public park and community pool. As part of an administrative settlement with the EPA, National Grid is rehabilitating the western two-thirds of Thomas Greene Park, and additional park improvements will include an expanded swimming pool and pool house, playground, green spaces and sports facilities.
Located in a qualified opportunity area close to highly rated schools and the Smith Street commercial corridor, the development will be among the first to rise since 82 blocks of Gowanus were rezoned last year to meet demand of permanent affordable housing in a neighborhood with strong access to public transit.
The site is six blocks from the Carroll Street subway station, served by the F and G lines, and four stops from Manhattan via the F line. It is also four blocks from Union Street Station, served by lines D and R, and one stop from the Atlantic terminal. By car, it is easily accessible to Manhattan via the Brooklyn Bridge or the Battery Tunnel.
JLL’s debt and equity advisory team representing the borrower was led by senior managing director Christopher Peck, director Nicco Lupo, senior managing directors Jeff Julien and Rob Hinckley and partner Jonathan Faxon. The deal is JLL’s second for Domain in recent weeks, the first being 420 Carroll St., a 350-unit multi-unit property also in Gowanus.
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