BRP Companies Gets $290M from Goldman Sachs for Queens Opportunity Zone project

BRP Companies broke ground on the mixed-use development at 163-05 Archer Avenue, known as the Archer Towers

New York /
Oct.October 05, 2021 05:45 PM

(STUDIO V Architecture, brpcompanies.com, iStock)

Goldman Sachs Asset Management said it provided $290 million of financing for a mixed-use development in a Queens Opportunity Zone where BRP Companies broke ground this week.

The financing includes equity from Opportunity Zone funds and is part of the investment firm’s
One Million Black Women initiative, a $10 billion plan aimed at improving opportunities for Black women over the next decade, according to a Goldman Sachs news release. A spokesman for the firm declined to break the package down in detail.

The 24-story building in Jamaica, not far from JFK International Airport, will be known as Archer Towers, taking the name from its address at 163-05 Archer Avenue. The 542,000-square-foot development will include 605 mixed-income residences, 20,000 square feet of amenities and 14,000 square feet of retail space.

It also includes 199 on-site attended parking spaces, a media room, a children’s playroom, a basketball and pickleball court, golf simulator and yoga studio. The property is expected to be completed in spring of 2024.

BRP bought the property in 2017 from developer Chris Jiashu Xu for about $55 million. In May 2020, BRP tapped the brokerage JLL to arrange $268 million of joint venture equity for the project.

BRP Companies, led by Meredith Marshall, recently completed The Crossing at Jamaica Station, a mixed-income, 669-unit residential building with an affordable housing component. It’s among the largest such developments in New York. It’s also developing the new National Urban League Headquarters in Harlem, New York, which got financing from Goldman Sachs as well.

The Opportunity Zone program was enacted into law under President Trump in 2017 and was designed to lift low-income communities across the nation. Real estate developers and investors flocked to take advantage of the federal program’s significant discounts on their capital gains taxes.

The program has come under scrutiny from government watchdogs and congressional Democrats, who say the program is a tax break for the rich. Real estate experts have also questioned the economics of the program as land values skyrocket in Opportunity Zone tracts, narrowing returns.





    Related Articles

    arrow_forward_ios
    Census tract 135 and Stellar Management's Larry Gluck (Credit: Getty Images and Stellar Management)
    How a small stretch of land on the Far West Side became an Opportunity Zone
    How a small stretch of land on the Far West Side became an Opportunity Zone
    CrowdStreet CEO Tore Steen and vice president Darren Powderly (Credit: CrowdStreet and iStock)
    Crowdfunding platform launches $20M Opportunity Zone fund
    Crowdfunding platform launches $20M Opportunity Zone fund
    From left: New York Governor Andrew Cuomo, New York State senator James Sanders Jr., and New York City Mayor Bill de Blasio (Credit: Getty Images, iStock, and NY Senate)
    “This program will either be a boom or a bust:” State senator has plans to redesign Opportunity Zones
    “This program will either be a boom or a bust:” State senator has plans to redesign Opportunity Zones
    Arden plans to build 20-story project in Inwood Opportunity Zone
    Arden plans to build 20-story project in Inwood Opportunity Zone
    Arden plans to build 20-story project in Inwood Opportunity Zone
    Joshua Burrell and excerpts from the court document (Activated Capital, United States District Court)
    Manhattan investor charged in Opportunity Zone fraud
    Manhattan investor charged in Opportunity Zone fraud
    Seth Meltzer, principal of Hudson Partners Development and a rendering of Reserve at Towpath Trail
    Schenectady project aims to prove Opportunity Zones can work
    Schenectady project aims to prove Opportunity Zones can work
    Goldman Sachs CEO David Solomon and 1 Flatbush Avenue in Brooklyn (Getty, Hillwest, iStock)
    Oh, honey: Goldman Sachs to add beehives to real estate assets across U.S.
    Oh, honey: Goldman Sachs to add beehives to real estate assets across U.S.
    Co-head of Goldman’s Europe Tavis Cannell with the Paris building (Google Maps, Goldman Sachs)
    Goldman Sachs spends $119M on Paris office, retail building
    Goldman Sachs spends $119M on Paris office, retail building
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...