Charney Companies, Tavros and Incoco Capital have completed the construction capitalization for 175 Third St., described as the fifth planned building within the Gowanus Wharf campus. The capital stack for the new multifamily tower totals $785 million, combining a large debt package with a substantial equity commitment.
Apollo and Affinius Capital LLC are slated to provide $600 million in debt financing for the project, according to the parties involved. RXR will contribute $185 million in equity, rounding out the capitalization and enabling the sponsors to move forward with construction.
At full build-out, 175 Third St. is expected to become the largest building in the Gowanus neighborhood, with approximately 1,100,000 square feet across 27 stories. Plans call for nearly 1,100 apartments, positioning the property as a major new source of multifamily housing within the Gowanus Wharf campus.
The development program includes a significant affordable housing component. Twenty-five percent of the apartments at 175 Third St. are planned to be permanently affordable, reflecting a long-term affordability commitment within the broader residential mix at the property.
Representatives of the sponsorship group framed the closing of the capital stack as a milestone for both the project and the surrounding area. Justin Pelsinger, partner and COO at Charney, said the financing arrangement with Apollo, Affinius and RXR underscores confidence in 175 Third St. and aligns with a long-term investment approach to the waterfront neighborhood.
Pelsinger also noted that the sponsors intend for 175 Third St., together with their other holdings at Gowanus Wharf, to contribute to the evolving residential and lifestyle profile of the immediate area. The building is planned adjacent to the canal, adding another large-scale residential asset to the campus.
JLL played an advisory role in putting the capital stack in place. Senior managing directors Christopher Peck and Peter Rotchford, along with senior director Nicco Lupo, arranged the financing on behalf of the sponsorship group.
