A joint venture of Charney Cos. and Tavros Holdings has broken ground on a 654-unit partially affordable multifamily project in Brooklyn’s Gowanus neighborhood. The developers acquired the full-block site in 2022 for $102 million, as reported by The Real Deal, following the 82-block Gowanus rezoning.
The development will comprise two residential towers and will include 154 affordable units. Designed by Fogarty Finger Architects, the project was facilitated by the state’s Brownfield Cleanup Program. Located at 320 and 340 Nevins St., the site is some 10 miles from Manhattan and within walking distance of public transportation.
This is one of the 18 projects included in the Gowanus Neighborhood Mixed Income Housing Development Program which is meant so unlock more than 5,300 housing units including 1,400 affordable residences. Their development was stalled by the expiration of the 421-A affordable housing program.
Overseen by Empire State Development, the Gowanus program will offer tax breaks in-line with 421-A in order to capitalize on the aforementioned rezoning. Owners will make payments in lieu of taxes at a discount from the normal property taxes and the state will take over the sites and rent them back through long-term ground leases, according to The Real Deal.
The program also includes the 260-unit multifamily development at 251 Douglass St., which broke ground in August 2023, and expects completion in 2024’s fourth quarter. Also developed by Charney and Tavros, along with Canyon Partners Real Estate, the project is subject to $64.4 million in equity investment along with a $119.9 million senior construction loan.
Revitalizing New York residential development
The Gowanus program comes as part of a series of executive actions focused on housing supply in line with the New York Governor’s FY 2025 Executive Budget which incentivize construction of new supply and inclusion of affordable units within office conversion projects. Gov. Hochul also proposed a $500 million fund for the construction of up to 15,000 residential units on state-owned land.
Currently, the Brooklyn multifamily pipeline totals some 18,400 units across 64 properties, of which 20 are fully affordable and 33 are partially affordable, according to Yardi Matrix data. Throughout 2023, developers delivered nearly 3,200 residences across 11 properties in the borough.
