Goose Lands $143M Construction Loan for Controversial Arrow Linen Site
Commercial
New York
Goose Property Management secured a construction loan for its controversial residential project at the former Arrow Linen site in Park Slope.
Affinius Capital provided $143 million for the four-building development at 441-467 Prospect Avenue, replacing a $5.4 million loan from Citibank issued to the previous owner in 2013, as first reported by PincusCo.
Yitzchok Katz's firm acquired the site from Arrow Linen Supply Company for $55 million last month. The family-owned laundry rental business had initially planned to redevelop the site with Apex Development but backed out after its CEO's death in May.
After a controversial rezoning process, Apex received City Council approval last year to rezone the site for a 250-unit residential building, with 40% (100 units) affordable to households earning 60% of the area's median income. However, Goose filed new plans for four 10-story buildings with over 396 units, including around 100 affordable units (approximately 25% of the total), sparking ongoing negotiations.
Local Council Member Shahana Hanif stated, "A change in ownership does not erase the commitments made to the Windsor Terrace community. I met with Goose Property Management and made it clear that the CBA is the floor."
The developer appears to avoid New York's 485x wage floor by dividing the project into four 99-unit towers. Arrow Linen, founded in 1947, plans to relocate its laundry operations.
Tags: 485x, Affordable Housing, Construction Loan, Rezoning