Domain Companies’ Matt Schwartz, Vorea Group’s Peter Papamichael and rendering of 540 DeGraw Street (Getty, Domain Companies, Vorea Group)
Gowanus has it going on.
Domain Companies has closed on a $142 million construction loan for its 270-unit development in Gowanus, the firm announced Friday. The project at 540 DeGraw Street already secured the coveted 421-a tax abatement. Now Domain has the capital to get building.
The $230 million project is a collaboration between Domain and Vorea Group, the development firms headed by cousins Chris and Peter Papamichael. Goldman Sachs’ Urban Investment Group, a $1 billion community development fund, is a limited partner investor.
The developers will preserve 25 percent of the project’s units for below-market-rate renters, as required by the city’s Mandatory Inclusionary Housing program. It will include the standard suite of luxury amenities, from a dog run to a clubhouse, following the model of other Domain and Vorea collaborations. They also plan 18,000 square feet of ground-floor commercial space, and expect to wrap construction in 2025.
The loan, courtesy of U.S. Bank, was arranged by JLL Real Estate Capital. Handel Architects designed the project.
Domain and Vorea both have experience building for the outer boroughs. Just a month ago, the firms closed financing on another development in Gowanus, a 360-unit project at 404 and 420 Carroll Street. In all, Domain says this is its fourth mixed-use project it has launched construction on in the past 18 months. Its portfolio includes some 1,600 apartments, many in up-and-coming neighborhoods like Mott Haven and Hunter’s Point.
Vorea was one of the city’s most active developers on TRD’s annual ranking, filing plans for 1.3 million square feet of new projects outside Manhattan last year.