PMG, Carlyle Refinance 517-Unit Development in Gowanus

The Carlyle Group and Kevin Maloney’s Property Markets Group secured fresh financing at Society Brooklyn in Gowanus.

The developers landed a $370 million bridge loan from Brookfield Asset Management at the two-building, 517-unit property, JLL announced. The three-year deal was negotiated by JLL’s Christopher Peck, Peter Rotchford and Nicco Lupo.

The property spans 456,000 square feet and features a split between 385 market-rate units and 132 affordable units. Amenities include bicycle storage, on-site parking, multiple pool decks with barbecue areas, pet washing stations, screening rooms, coworking spaces, fitness centers, yoga studios and rooftop terraces with Manhattan skyline views.

The property also features 57,000 square feet of commercial and retail space.

Carlyle, PMG and Brookfield did not immediately respond to requests for comment from The Real Deal.

PMG exercised a purchase option on the site in 2021, paying $9 million for both plots of land. Two years later, Carlyle paid $100 million to buy into the project. A Carlyle affiliate secured $230 million in financing from Athene for both acquisition and construction.

Shortly thereafter, the joint venture partners scored $335 million in construction financing as part of a larger recapitalization that includes $165 million in equity.

The developers needed to beat a 2026 deadline to complete the project to qualify for the 421a tax abatement program, which has sunsetted. They did so, opening up the property last May.

There are 45 units available across the two buildings, according to the property website, ranging from $3,290 to $9,384 to rent.

Gowanus has been a hotbed of development activity since the neighborhood was rezoned, which Carlyle is intimately familiar with: in January, Carlyle and Z+G Property Group acquired a 132-unit, 13-story apartment building at 130 Second Street in Gowanus for $105 million.

Carlyle made waves several years ago when it was revealed to be purchasing small (mostly 10-unit or fewer) Brooklyn apartment buildings one at a time, amassing a $500 million portfolio.