A trio of investors has landed a total of $785 million in funding to support residential development, 175 Third Street. The group includes Charney Companies, Tavros and Incoco Capital.
Affinius Capital LLC and Apollo are providing $600 million in debt, with $185 million in equity coming from RXR. JLL arranged the deal.
The 27-story structure is set to be the largest in all of Gowanus upon delivery, according to the developers. The building, which will feature almost 1,100 residences (25 percent set aside for permanent affordable housing), is the fifth one located in the Gowanus Wharf campus.
Along with housing, 175 Third Street will feature a 28,000-square-foot public waterfront, along with recreation space. Amenities include a more than 85,000 square foot fitness center and club, ground-floor retail and artist studios. Life Time has signed a lease to occupy the three-story fitness and spa space. In total, 175 Third Street will span roughly 1.1 million square feet.
According to Apollo, NYC's market overall remains under-supplied, with Gowanus being one of Brooklyn's fastest-growing neighborhoods. Also, Christopher Peck of JLL said in a statement that 175 Third is "one of the most compelling large-scale development opportunities we've seen in Brooklyn."
"We are excited to partner with Charney Companies and Tavros on 175 Third Street, a high-quality residential development, a project that exemplifies the kind of impactful, community-transforming development we seek to support, providing much-needed housing in the Gowanus neighborhood," Russ Young, head of investments at RXR, noted in remarks.
"This investment reflects RXR's commitment to delivering creative capital solutions tailored to the unique needs of best-in-class development teams. Charney and Tavros have built something special at Gowanus Wharf, and we look forward to helping bring their vision for 175 Third Street to life."
The funding comes about a year after Charney Companies and Tavros landed $174.5 million to support the pre-development of 175 Third.
Another notable project in Gowanus Wharf secured a $125.5 million loan in March to refinance one building in the campus.
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