BROOKLYN, NY - Canyon Capital Realty Advisors, a real estate investment firm, has provided a $120-million senior construction loan to LSG 365 Bond Street LLC, an affiliate of Lightstone, for the ground-up development of a 12-story luxury residential rental community in Gowanus, one of Brooklyn’s most dynamic and diverse neighborhoods. Meridian Capital Group, a New York City based commercial mortgage broker, advised Lightstone on the transaction.
The proceeds of Canyon’s construction loan will be used to develop a contextual multifamily property that will include 429 residential units at 365 Bond Street, including 86 units of affordable housing. The project will also include a public esplanade along the Gowanus Canal, which will provide the community with a lighted walk-way, public outdoor space, and access to the canal.
“Canyon has a long history of investing in Brooklyn and its emerging neighborhoods, and we have been tracking the Gowanus neighborhood for some time now. We are pleased to have the opportunity to finance this transformational project, which will add several hundred mixed-income high-quality housing units to the neighborhood,” said Charlie Rose, Director at Canyon Realty. "Gowanus has recently experienced a notable revitalization and is now home to a variety of restaurant, retail and arts amenities, and we are excited to be a part of the area’s evolution.”
In fact, Canyon has been an active investor in New York City and other Brooklyn neighborhoods for over two decades. Notable previous investments by Canyon in Brooklyn include the following:
One Hanson Place (the former Williamsburg Savings Bank Tower), which Canyon redeveloped into a 217-unit residential project in Downtown Brooklyn;
The Viridian, a 130-unit multifamily rental project in Greenpoint;
The Isabella, a 63-unit residential project located in Clinton Hill; and
20 Henry, a 39-unit historical rehabilitation and residential project, which Canyon developed in Brooklyn Heights.
Coming on the heels of its successful development of Gantry Park in Long Island City, Lightstone is expanding its New York City footprint to include Brooklyn. “Lightstone is committed to the Gowanus neighborhood and its current and future residents, and we are thrilled to have had the opportunity to work with Canyon Realty to bring this project to fruition," said Mitchell Hochberg, President of Lightstone. “Canyon Realty was the ideal lender to provide the non-recourse financing for this construction loan. The Canyon team’s deep understanding of the local market and ability to quickly execute this large, complex transaction was essential to us.”
Drew Anderman, Senior Managing Director at Meridian Capital, said: “Canyon Realty was able to rapidly comprehend this complex transaction, issuing a term sheet within a few days of learning about the opportunity. Canyon has again proven to be a dependable source of capital, and we look forward to working with them again on future opportunities across the country.