US Bank Provides $142M Construction Loan For Gowanus Development Site

The development site located at 540 Degraw St. in Gowanus, Brooklyn is the subject of a recent closed transaction. The property encompasses a total of 174,000 square feet and is categorized as a development site.

Summary of transaction details

• Property Type: Development site
• Transaction Amount: $142,000,000
• Market: Gowanus, Brooklyn
• Address: 540 Degraw St.

In this deal, the lender responsible for providing the loan is US Bank. On the other hand, The Domain Companies, represented by Matthew Schwartz and Chris Papamichael, act as the landlord in this transaction.

The loan amount associated with this closed transaction is $142,000,000, and it is classified as a construction loan. The terms of the loan include the development of a 12-story structure, offering 268 units. Out of these units, 25% will be designated for affordable housing, catering to households between 40% and 100% of the Area Median Income.

The project also encompasses 18,000 square feet of ground floor commercial space. This area is planned for a mix of food and beverage establishments and neighborhood retail units. Additionally, as part of the rezoning efforts, Domain has partnered with Arts Gowanus to provide dedicated studio space for local artists. This initiative, called "Gowanus Mix," aims to support the artistic community in the area.

The development will take advantage of New York City's 421-a tax abatement program and is expected to be completed by 2025.