The Carlyle Group has taken a big step forward in its effort to become Brooklyn’s largest landlord.
The private equity giant paid Kevin Maloney’s Property Markets Group $100 million for the Gowanus development site, with plans for two mixed-use towers that will combine into 517 residential units. PMG has break ground The project will also include 52,000 square feet of commercial space.
Society Brooklyn, the larger of the two towers at 267 Bond Street, will include 344 residential units and 32,000 square feet of commercial space. Sackett Place, another tower at 498 Sackett Street, will have 173 residential units.
According to UAG, the project’s construction manager, 75 percent of the apartments will be market-rate and 25 percent will be set aside as affordable housing as part of New York’s affordable housing program, also known as the 421a exemption.
The project is expected to be completed in 2025. Projects eligible for the now-expired 421a tax deduction must be completed by 2026 to receive the deduction.
PMG exercised a long-term purchase option on the land in 2021, paying $9 million for the two parcels. Maloney spearheaded the development of the project, Jason Hart signed the agreement to purchase for Carlyle, city records Submit Wednesday program.
The company has secured a total of $170 million in financing for acquisition and construction from Apollo Insurance Solutions, the lending arm of private equity firm Apollo Global Management, city records show.
Representatives for Carlyle and PMG did not immediately respond to requests for comment.
a survey real deal Private equity has been quietly amassing a slew of walk-up apartment buildings in Brooklyn neighborhoods like Bushwick, Bedford-Stuyvesant, Park Slope and Cobble Hill, as it emerged last summer, which is a huge challenge for a company the size of Carlyle. An unusual move for an operating company.
Elsewhere in Brooklyn this week, Jeff Levine’s Douglaston Development paid $66 million for a 421a-compliant lot in Bedford-Stuyvesant, where the developer plans to build a 465-unit rental tower.
