Largest building in Gowanus moves ahead after $174.5M in financing
(L) Credit: JLL, (R) Streetview of 175 Third Street, Map data © 2024 Google
Plans for the largest building in Gowanus are moving forward after developers secured $174.5 million in financing. Last week, Charney Companies and Tavros obtained funding for 175 Third Street, a roughly one-million-square-foot project that will add 1,000 new apartments to the neighborhood as part of their larger Gowanus Wharf development. Once complete, the building will make Charney and Tavros the largest property owners in the area, with over two million square feet and 2,200 residences across Gowanus.
The developers, represented by JLL Capital Markets, secured $110 million in senior financing from Silver Point Capital, $35 million in mezzanine debt from a venture between Tikehau Capital and the Brodsky Organization, and $29.5 million in equity from Atlas Capital Group.
The JLL team was led by Senior Managing Directors Christopher Peck and Peter Rotchford, Senior Director Nicco Lupo, Managing Director Lauren Kaufman, and Vice President Jonathan Faxon.
In a statement, Justin Pelsinger, COO of Charney, called the acquisition “a major step forward in our vision for Gowanus Wharf and we truly value the commitment of our partners, Silver Point Capital and Brodsky/Tikehau Capital.”
“We’re thrilled to secure this significant site, our fourth in the portfolio, and embrace the opportunity it presents,” Pelsinger said. “Our focus will be on delivering high-quality, much-needed housing for New Yorkers and actively participating in the positive transformation and further development of the vibrant Gowanus neighborhood.”
The project will consist of two high-rise towers with residences ranging from studio to three-bedroom layouts. The property will also feature ground-floor retail space and state-of-the-art amenities.
Plans for the project include two high-rise towers with residences ranging from studios to three-bedroom layouts. The development will also feature ground-floor retail space, state-of-the-art amenities, and a 37,000-square-foot public waterfront esplanade designed by James Corner Field Operations.
The building joins several others as part of the larger Gowanus Wharf development, including Union Channel at 240 3rd Avenue, Douglas Port at 251 Douglass Street, and Nevins Landing at 310 to 340 Nevins Street.
As 6sqft previously reported, Danish architect Bjarke Ingels was originally tapped by former site owner RFR Realty to design the project, which would have marked his first residential development in Brooklyn.
Pre-development is currently underway at the site, and construction is slated to begin in mid-2026.
The project falls within the Gowanus rezoning area, an initiative approved by the city in 2021 under former Mayor Bill de Blasio that upzoned 82 blocks of the primarily industrial neighborhood to allow for new residential development.
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