NEW YORK CITY — Charney Cos., Tavros and Incoco Capital have received $785 million in construction financing for the development of 175 Third Street, the fifth building at the $1 billion Gowanus Wharf campus in Brooklyn.
Apollo and Affinius Capital are providing $600 million in debt, and RXR is providing $185 million in equity. Christopher Peck, Peter Rotchford and Nicco Lupo of JLL secured the financing on behalf of the borrowers.
Upon completion, 175 Third Street will mark the largest building at the development, which is situated within the Gowanus area of Brooklyn. Charney and Tavros purchased the site in May for $160 million. The residential building will total roughly 1.1 million square feet across 27 stories and will house approximately 1,100 units. Of the residences, 25 percent will be designated as permanently affordable housing.
Bjarke Ingels Group designed the property, which will also feature a 28,000-square-foot public waterfront esplanade in collaboration with the New York City Department of Parks & Recreation. Additionally, Life Time has signed an 85,000-square-foot lease at the building for a three-story fitness club and spa.
“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,” says Justin Pelsinger, partner and chief operating officer at Charney Cos. “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.”
Long Island City-based Charney is a fully integrated real estate development, construction, brokerage and management firm. Tavros, based in New York City, is a privately owned real estate investment management and development firm. Incoco Capital is also a privately owned investment management firm, with offices in New York City and Seoul.
— Hayden Spiess