Monadnock Obtains $175M Loan for Gowanus Multifamily

Monadnock Development scored a large sum of money to develop a 300-unit multifamily project in Gowanus.

Nick Lembo’s firm landed $175 million in construction financing for a development at 155 Third Street in the Brooklyn neighborhood, the Commercial Observer reported. PCCP and U.S. Bank provided the debt for the project, which will unfurl along the Gowanus Canal.

A JLL Capital Markets team including Christopher Peck, Winfield Clifford and Kellogg Gaines arranged the debt.

The 22-story project is sited to the west of the canal’s northern end. It will include 225 market-rate apartments and 75 affordable units; the development was approved under the 421a affordable housing program prior to its lapse.

There will also be 30,000 square feet of commercial space and ground-floor retail, which will connect to a planned seven-acre esplanade. The development is expected to be completed by the last quarter of 2027.

Projects continue to pop up in Gowanus, which was rezoned four years ago to unlock mixed-use developments where manufacturing hubs once reigned. At the time, city officials estimated that the 82-block rezoning would enable the construction of more than 8,500 apartments, 3,000 of which would be reserved for low- and moderate-income New Yorkers.

Gowanus was one of the Bill de Blasio administration’s largest upzonings. Developers have responded in kind by trying to take advantage of the neighborhood’s revitalization into a residential hub.

Last month, David Tabak purchased a 38,500-square-foot development site at 563 Sackett Street in Gowanus for $58.5 million. He’s planning a 12-story, 350-unit residential building.

Meanwhile, Monadnock — along with the Gotham Organization and nonprofit Christian Cultural Center — landed a $315 million loan in the spring for their affordable housing project in East New York. The loan finances the construction of 453 rental units at the site, which used to be a vacant parking lot at the church’s 10-and-a-half-acre Brooklyn campus

.— Holden Walter-Warner