Charney Companies, Tavros and Incoco Capital closed on the construction capitalization for 175 Third Street, the fifth building in the Gowanus Wharf campus. Apollo and Affinius Capital LLC are providing $600 million in debt while RXR is providing $185 million in equity.
Once completed, 175 Third Street will be the largest building in Gowanus, with approximately 1.1 million square feet and nearly 1,100 residences spanning 27 stories. Twenty-five percent of the development’s units will be permanently affordable.
“Securing this financing with Apollo, Affinius and RXR validates both the strength of 175 Third Street and our long-term commitment to this waterfront community,” said Justin Pelsinger, partner and COO at Charney Companies. “We are excited to begin construction on this transformative building alongside the canal and we expect it, and our other properties at Gowanus Wharf, to enhance the dynamic of living and lifestyle in the neighborhood.”
Designed by Bjarke Ingels Group (BIG), the property brings resilient design, more affordable housing and a 28,000-square-foot public waterfront esplanade to Gowanus created by Field Operations in collaboration with the NYC Department of Parks & Recreation. Life Time has also signed a 85,000-square-foot lease for a three-story fitness club and spa.
“175 Third Street will be Gowanus’ most significant development and one of the most prominent in both Brooklyn and New York City overall. The asset represents the capstone of a thesis we’ve spent nearly ten years building and will result in one of the most significant deliveries of affordable housing by any single building in the city,” said Colin Rankowitz, partner at Tavros. “Just as lasting is what 175 Third Street will provide the community — a 28,000-square-foot public esplanade on the Gowanus Canal, a market-leading multi-level Life Time fitness and wellness club alongside ground floor retail and subsidized artist studios which serve to preserve Gowanus’ history as a mecca for makers.”
“We are excited about our continued partnership with both Tavros and Charney Companies and our joint vision for 175 Third Street,” said Fa Park, CEO and Founder of Incoco Capital. “With market-leading retail partners already signed on and an impressive, innovative design from Bjarke Ingels, we know this project will be recognized worldwide.”
“We continue to focus on backing experienced sponsors on high-quality assets where execution and alignment matter most,” said Affinius Capital Managing Director David Greenburg. “175 Third Avenue reflects both the strength of our long-standing relationship with the sponsors and the opportunity to partner with Apollo in delivering a tailored financing solution.”
“This property represents a high-quality, large-scale multifamily development with strong fundamentals in one of Brooklyn’s fastest-growing neighborhoods,” said Ben Gray, Partner at Apollo. “The New York City housing market remains undersupplied, and we are pleased to provide a scaled financing solution to support a sponsorship team with deep local market expertise as they execute their broader vision for Gowanus Wharf.”
“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,” said Russ Young, head of investments at RXR. “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 JLL Debt team that arranged the financing was led by Senior Managing Directors Christopher Peck and Peter Rotchford and Senior Director Nicco Lupo.
“What resonated with capital was the combination of a premier location, a truly differentiated residential offering, and sponsors who have already demonstrated their ability to execute in this neighborhood,” said Peck. “Charney, Tavros, Incoco Capital and RXR bring deep local expertise and a proven track record, making 175 Third one of the most compelling large-scale development opportunities we’ve seen in Brooklyn.”
