Domain Companies landed $205 million to refinance its 300-plus unit apartment complex in Gowanus.
AllianceBernstein provided the financing, which replaces $176 million in loans issued by Bank OZK in 2022.
The two-building project at 420 Carroll Street includes 360 apartments, of which 90 are affordable, and 27,000 square feet of commercial space.
Matt Schwartz, co-CEO of Domain, said in a statement that the refinancing, arranged by JLL and Newmark, “represents a vote of confidence in the project, underscoring the demand we’ve seen during the lease-up of the building.” The building is more than 60 percent leased, according to the developers.
The buildings are the first completed project in Gowanus to take advantage of a 2021 rezoning, which was expected to add more than 8,000 new apartments to the Brooklyn neighborhood over 10 years. The rezoning was caught in the crosshairs of the debate over the future of the 421a property tax break, which expired in June 2022. Developers hoping to take advantage of the program needed to have foundation footings in place by then, and then needed to race to meet a 2026 deadline to complete construction.
At one point, Gov. Kathy Hochul created a workaround for 18 projects in Gowanus, including the Carroll Street development, to receive tax benefits that mimicked the defunct program. The alternative ultimately wasn’t necessary because the state legislature extended the construction deadline to June 2031 as part of the 2024 state budget.
Domain bought the site in 2018 for $47.5 million from the Property Markets Group. Vorea Group, Silverstein Properties and affiliates of Cantor Fitzgerald are also partners on the project.
Nearby, Sky Equity Group secured a $340 million loan this week to refinance its 603-unit, mixed-use project at 313 Bond Street. Back in April, Charney Companies and Tavros landed $145 million in acquisition and pre-development financing for their 1,000-unit rental building at 175 Third Avenue.
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