Yitzchok Katz’s Goose Property Management scored a $166 million construction loan for four adjacent multifamily buildings in Boerum Hill.
Slate Property Group provided the loan for the project, which includes three 99-unit buildings and one 70-unit building, an apparent attempt to avoid the $40 wage floor that kicks in at 100 units under 485x.
The fresh financing, first reported by PincusCo, replaces a $100 million loan from H.I.G. Realty Partners. Henry Bodek of Galaxy Capital arranged both deals.
Goose bought the L-shaped development site last year from Dillon Realty Interests for $40 million. The 238,000-square-foot nearly full-block site was rezoned from industrial to residential in 2022 and had already gone through the city’s public review process for development, called Ulurp.
JLL, which represented the buyer and seller, said at the time that Goose planned to build mixed-use multifamily housing on the site.
The sale closed the same month the state passed a revamped version of the expired 421a tax abatement. The new iteration, called 485x, has deeper affordability requirements than 421a, and a higher wage scale for workers depending on location and project size.
The wage requirement has motivated many developers to scale back the number of apartments to 99 to avoid the wage floor, sometimes by subdividing large lots. By some estimates, construction costs for buildings with more than 100 units are up 15 to 25 percent under the new program.
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Yitzchok Katz lands $100M for 2 Brooklyn projects
The era of 99-unit buildings has arrived
