Three developers are poised to begin construction on a site that will bring nearly 140 residences and retail space to Brooklyn Heights. It comes all together with news that the Landau Properties, in partnership with Third Millennium Group and Midtown Equities landed a $113 million senior loan from Northwind Group to close on the land acquisition of 205 Montague Street.
The deal includes $25 million in preferred equity from Atlas Capital Group, alongside a total of $100 million in equity. Estreich & Co. represented Landau, while Rosewood Realty Group acted on behalf of Atlas.
The plans now call for demolishing the Montague Street corridor and building 90 rental residences, 46 luxury condos and 40,000 square feet of retail space. The development is expected to cost $500 million, making it one of the largest deals of 2025 in New York City, according to the investors.
Even though Brooklyn recently saw a flurry of apartment deliveries fueled by the tax incentive program 421-a, Victor Rodriguez, senior director of analytics for CoStar's NYC market, noted that the borough, along with NYC as a whole, remains "critically undersupplied." That's a thought that Ran Eliasaf, founder and managing partner of Northwind, shares as well.
"We remain strong believers in New York City’s residential market and the long-term fundamentals that sustain it, due to inherent supply constraints," he said in a statement.
"Brooklyn Heights exemplifies these characteristics, and this upcoming project is well positioned to benefit from sustained demand in this supply-stricken neighborhood. We are pleased to support this sponsorship group as they advance the project through predevelopment, and we have confidence in the highly experienced project team they have assembled to execute the business plan.”
In the short term, CoStar expects to see a "massive decline in deliveries," as the last of the supply from 421-a comes online.
Both the construction and demolition of 205 Montague Street are anticipated to start early next year.
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