The development juggernaut in Brooklyn’s resurgent Gowanus neighborhood gained more momentum with a crucial construction loan this week — but the state’s refusal to extend the 421A tax-abatement program could spell an end to it.
On the heels of the Brodsky Organization’s construction launch on a mixed-use, mixed-income tower at 499 President St., where it took over the driver’s seat from partner Avery Hall Investments, Gindi Capital and Avery Hall closed on a $110 million construction loan from Affinius Capital for a 193-unit rental tower at 204 Fourth Avenue.
The loan allows vertical construction to start immediately. Gindi and Avery bought the site in 2019 but work had only reached the foundation stage.
The project will “deliver much-needed mixed-income housing, state-of-the-art design, and exciting new retail for Gowanus — and couldn’t be more transit accessible,” Gindi principal Eli Gindi said. The site is directly on top of the Union Street R line subway station.
Meanwhile, Domain Companies is to top off next month at 420 Carroll St., a 360-unit, amenities-laden, mixed-income rental apartment complex on the Gowanus Canal.
The President Street project landed a $155 million construction loan from M+T Bank and Bank of New York.
Development principal Thomas Brodsky said: “We look forward to delivering expertly designed, high-quality apartments and exciting local retail to the dynamic Gowanus neighborhood together with Avery Hall Investments.”
All three projects were made possible by 2022 rezoning to allow larger buildings in the area. They also happen to be among the last to beat the 2026 completion deadline under the expired 421A program, which granted builders tax abatements in exchange for including below-market-price apartments.
The state Legislature declined to extend the 421A deadline, which Gov. Kathy Hochul had sought — leaving planned construction of thousands of other units in limbo.
[Written in collaboration with other media outlets with information from the following sources]
