300 Nevins Street
Update
07/30/24
Arctaris Impact Provides Key Opportunity Zone Investment in $475 Million Mixed Income Development in Gowanus, Brooklyn
Arctaris Impact Investors, LLC, a Boston-based impact investment firm that leads revitalization initiatives in underserved communities, made a $27 million equity investment in 310 and 340 Nevins Street, a $475 million mixed-use/mixed-income project in Brooklyn’s Gowanus neighborhood. The transaction marks Arctaris Impact’s first investment in Brooklyn and will support New York City’s efforts to transform a formerly contaminated industrial area into an economically diverse and vibrant community.
The 668-unit property is being developed by Tavros Holdings and Charney Companies, who are utilizing New York's 421a Program to provide 168 permanently affordable units to residents earning an average of 60% of Area Median Income. In addition to resident amenities and waterfront access the development will offer ~45,000 square feet of retail space, fostering opportunities for women- and minority- owned businesses.
“New York City is experiencing some of the tightest multifamily vacancy rates in the country, which disproportionately attacks the supply of affordable housing at lower-income levels,” said Jonathan Tower, Founder and Managing Partner of Arctaris. “Arctaris is proud of its role in blending together the federal Opportunity Zone program alongside NY State housing incentives to help solve the acute housing shortage in an otherwise challenging market.”
The project is capitalized with $175 million of total equity, which includes Arctaris Impact’s $27 million investment, as well as equity contributions from a large institutional anchor investor, investment funds, family offices and high-net-worth individuals. Tavros and Charney also closed on two construction loans totaling $300 million from Affinius Capital and Kennedy Wilson ($160 million), and TYKO Capital ($140 million).
“Arctaris was an early investor in the Nevins project because we wanted to support the City’s rezoning and environmental remediation initiatives to revitalize the Gowanus area,” said Nihar Sait, Managing Director and Head of Real Estate Investments at Arctaris. “Tavros and Charney’s experience in the Brooklyn submarket developing mixed income housing gave us confidence they would be able to successfully deliver the project despite challenging market conditions.”
“These buildings will provide much-needed housing to New York City and contribute meaningfully toward the redevelopment of the Gowanus Canal into a newly cohesive waterfront esplanade that is accessible by the community,” said Colin Rankowitz, partner at Tavros. “We truly value the commitment of Arctaris in moving this project ahead.”
“We are delighted that Arctaris understands our vision of an economically diverse and vibrant Gowanus and are proud that they’ve aligned with us for their first Opportunity Zone investment in Brooklyn,” added Justin Pelsinger, COO of Charney Companies. “This project is going to be a boon for the entire neighborhood and it’s incredible to see the constant progress on the Nevins Street site.”
The Project underscores Arctaris Impact’s ongoing commitment to driving positive change through strategic and impactful investments.
