JLL Capital Markets has announced that it has provided $142 million for construction financing of Majestic. This is a Class A ground-up mixed-use project with 255 multihousing units, and 18,000 square foot of commercial space. It’s located at 540 DeGraw St., in Brooklyn’s rezoned Gowanus neighbourhood.
JLL secured the loan for the borrower, which was a partnership between Domain Companies, Goldman Sachs Asset Management’s Urban Investment Group, Vorea Group, and Mega Development. Handel Architects and FutureGeeen are part of the project team. Total capitalization for the project is $230 Million.
The 12-story mid-rise will be completed in 2025 and 25 percent of its apartments will be affordable. Domain is aiming for a LEED Platinum Certification for the property. It is also working with Arts Gowanus on a partnership to provide dedicated studio spaces for local artists.
Majestic, Brooklyn’s most prominent mixed-use development, will be built on the site with the best visibility, directly adjacent to Thomas Greene Park. This is the only public park in the area that has a large community pool. National Grid has reached an administrative settlement with the EPA to remediate the western two-thirds of Thomas Greene Park. Additional park improvements will include a pool house and expanded pool, a green space, sports facilities, and a playground.
The development is located in a Qualified Opportunity Zone, near highly-ranked schools and Smith Street retail corridor. It will be one of the first developments to rise in Gowanus since 82 blocks were rezoned in Gowanus last year. This was done to meet the demand for permanent affordable homes in a neighborhood that has strong transit accessibility.
The site is located six blocks away from the Carroll Street station on the F and G line, and four stops via the F-line from Manhattan. The site is also located four blocks away from Union Street Station (served by the D/R lines) and one stop from Atlantic Terminal. It is easy to reach Manhattan by car via the Brooklyn Bridge and Battery Tunnel.
JLL’s debt and equity advisory group representing the borrower included Senior Managing Director Christopher Peck as well as Director Nicco Lupo and Senior Managing Directors Jeff Julien, Rob Hinckley and Associate Jonathan Faxon. JLL has arranged two deals in the last few weeks for Domain, the first one being 420 Carroll St. a multi-housing complex with 350 units in Gowanus.