Charney Cos. and Tavros Capital have purchased an empty lot bordering the Gowanus Canal for $164 million, according to an April 30 deed that appeared in the city register Tuesday. The two firms are planning a 1,000-unit development that they claim will be the largest building in the Brooklyn neighborhood.
The building is the fourth that Charney and Tavros aim to develop as part of their larger Gowanus Wharf campus, according to a press release. The three other buildings are yet to be completed. The plans stand to make the two companies the largest owners in Gowanus, they say, with 2 million square feet of residential real estate over 2,200 units to be controlled by them.
Samuel Charney, founder of Queens-based Charney Cos., and Nicolas Silvers, founding partner at Flatiron District-based Tavros, signed the deed on behalf of the buyer, an entity named Gowanus 3rd Street Owner.
The site, at 175-225 Third St. is 3 acres and is next to a Whole Foods Market and an arts center. It qualifies for an affordable housing tax break through the state’s now-expired 421-a program if the developers include affordable units on the site. Charney and Tavros secured $145 million in loans tied to the project, with $110 million from Silver Point Capital and $35 million from the Brodsky Organization and Tikehau Capital.
The Third Street site was sold by RFR, which bought the former home of a Verizon facility in 2018 for $115 million.
RFR allegedly defaulted on an $80 million debt on the property, prompting Madison Realty Capital to foreclose on the site, The Real Deal reported in October.
But RFR said in a press release about the sale that it had added significant value to the site. RFR emptied the property, secured excavation and foundation permits, and qualified the site for tax incentives. The company also managed an environmental clean-up program for the site, located next to the canal, which the Environmental Protection Agency has called one of the country’s most “seriously contaminated” bodies of water.
In addition to the Gowanus site, RFR sold its building at 522 Fifth Ave. to Amazon this month, with the Commercial Observer reporting the total price as $456 million.
The buyer and seller both declined requests to provide additional details about the project, so it remains unknown whether the building will contain rental or condo units and how much of the building will be affordable housing.
