NEW YORK CITY — JLL has arranged $520 million in financing for Sackett Place & Society Brooklyn, a waterfront multifamily development located in Brooklyn’s Gowanus neighborhood.
The financing includes a $335 million construction loan and $165 million in limited partnership equity. The borrower and developer is a joint venture between two New York City-based investment firms, Property Markets Group (PMG) and Carlyle.
Sackett Place & Society Brooklyn will ultimately consist of two 21-story residential towers totaling 517 units and 10,000 square feet of retail space. The two towers are situated on the corner of Bond and Union streets overlooking the Gowanus Canal.
An undisclosed number of units will be reserved as affordable housing as part of a rezoning initiative for permanent affordable housing in the Gowanus area. Construction is slated for a 2025 completion.
Christopher Peck, Andrew Scandalios, Peter Rotchford, Nicco Lupo, Rob Hinckley, Jeff Julien and Jonathan Faxon of JLL arranged the debt and structured the equity partnership between PMG and Carlyle. The direct lender on the construction loan was not disclosed.
“Developments with an affordable component continue to make sense to lenders seeking to deploy equity in a highly fractured market,” says Peck. “With its best-in-class sponsors and strong fundamentals, this project is the type of mixed-used venture that remains highly appealing to investors.”
— Taylor Williams