US Bank is providing a $142 million construction financing package for a new Class A mixed-use development in a rezoned portion of Brooklyn’s Gowanus neighborhood.
JLL arranged the September 9 deal with the Minneapolis-based bank on behalf of the sponsors, a partnership between Goldman Sachs Asset Management’s urban investment group, Domain Companies, Vorea Group and Mega Development.
The asset to be constructed has been dubbed Majestic and will feature 255 multi-housing units and 18,000 square feet of commercial space at 540 DeGraw Street in New York. The 12-story mid-rise will designate 25 percent of its apartment units as affordable and is set for completion in 2025.
Total capitalization for the project is $230 million, according to JLL. The Chicago-based firm’s debt and equity advisory team was led by JLL senior managing directors Christopher Peck, Jeff Julien and Rob Hinckley as well as director Nicco Lupo and associate Jonathan Faxon.
The $142 million loan is the second collaboration between JLL and Domain in recent weeks. On August 17, JLL arranged $176 million in construction financing for Domain for the ground-up development of a 360-unit, Class A multi-housing asset in Gowanus at 420 Carroll Street. Bank OZK provided the loan on the August transaction, which also featured Vorea as construction manager and Mega Development as its contractor.
As part of Majestic’s development, Domain is targeting a LEED Platinum certification for the asset and is also working with Arts Gowanus to partner on providing dedicated studio space for local artists. The new development is in a Qualified Opportunity Zone and will be one of the first assets to be created following the rezoning of 82 blocks in Gowanus during 2021 as part of a permanent affordable housing push.
Through an agreement with the US Environmental Protection Agency, National Grid is revitalizing the western two thirds of Thomas Greene Park adjacent to Domain’s new project. New features will include an expanded pool and pool house, playground, sports facilities and green space.