Park Slope-based Company Files for Rezoning to Develop a 247K SF Multifamily Complex

In the always changing landscape of New York City's real estate, Arrow Linen Supply Company has filed an application that could transform a South Slope linen supply factory into hundreds of apartments. This ambitious project seeks to breathe new life into the heart of Brooklyn, specifically at 441 and 467 Prospect Avenue. 

Arrow Linen Supply Company is at the forefront of this project, seeking new zoning to develop a nine-story, 247,000-square-foot residential project. The proposed location, 441 and 467 Prospect Avenue, will revitalize a part of Brooklyn that's characterized by its tight and pricey housing market. While this site is on the southern edge of Park Slope, it borders Windsor Terrace, an area known for its high real estate costs.

This project not only promises to transform the physical landscape but also challenges the perspective on new housing in the area. City Council member, Shahana Hanif, faces a significant test of her constituents' appetite for housing development. Hanif made headlines last year when she reduced a much smaller project in her district. This controversial decision puts her in a unique position to determine the fate of the Arrow Linen project.

Arrow's plans and challenges

Arrow Linen Supply Company, which owns the lot and its several low-scale buildings, is currently working with an architect but has not yet secured a developer. The formal review process, which includes a City Council vote, is not expected to start until next year. This project presents another opportunity for Council member Hanif to establish her progressive credentials, following a previous dispute over a mixed-income development.

The Prospect Avenue lots are currently zoned RB5, typically reserved for three-story row houses. However, historical records show that laundry services have been operating at this site since at least the 1940s. Arrow Linen's variance, allowing for industrial use, was last extended in May 2022. This highlights the unique nature of the project and the need for rezoning.

Arrow Linen's journey to transform the Prospect Avenue lots begins with an environmental assessment statement filed recently. This statement will determine whether a more comprehensive environmental impact statement is necessary. The Department of City Planning will play a pivotal role in certifying the application, followed by input from Brooklyn Community Board 7 and Borough President Antonio Reynoso. Ultimately, the fate of the project will be sealed through binding votes by the City Planning Commission and the City Council.

Under the Council's custom of member deference, the outcome of the project heavily depends on the local member, Hanif. Her stance on the development will carry significant weight in the decision-making process.

Why rezoning matters

Rezoning the area would subject future development to the city's Mandatory Inclusionary Housing law, which mandates at least 25 percent affordability. However, the feasibility of a rental project on Prospect Avenue remains uncertain, especially without the property tax break 421a being restored in some form by the state legislature. This aspect adds complexity to the project's financial viability.

The history behind the project

Arrow Linen has owned 441 and 467 Prospect Avenue since 1978. The company acquired these properties from General Linen Supply and Laundry Company, backed by a $150,000 mortgage. Notably, this debt was paid off in 2013 when Arrow Linen secured a $5.4 million loan from Citibank on the same properties. It remains unclear whether Arrow intends to relocate or cease its business operations, or what sort of arrangement it will seek with a potential developer. The compensation for the landowner will largely depend on the type of development approved by the city.