Arctaris Impact Provides Key Opportunity Zone Investment in $475 Million Mixed Income Development in Gowanus, Brooklyn
29 Julio 2024 - 4:47PM
Business Wire
Arctaris partners with Tavros Holdings and
Charney Companies to transform a former industrial waterfront site
into an economically diverse and vibrant community
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.
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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.
For more information on Arctaris and its initiatives, please
visit www.Arctaris.com.
About Arctaris Impact Investors, LLC
Arctaris Impact Investors, LLC is a Boston-based impact
investment firm with experience spanning 15 years. The firm manages
funds which invest in growth-oriented operating businesses and
community infrastructure projects located in underserved
communities. Founded in 2009, Arctaris has partnered with the
Kresge Foundation, Harvard Business School Professor Michael
Porter’s Initiative for a Competitive Inner City, and multiple
other foundation, federal and state government agencies to invest
in Opportunity Zones, inner cities and targeted rural communities
throughout the U.S., with the aim of delivering above-market
investment returns alongside positive social impact. For more
information visit https://arctaris.com or for press inquiries
contact Lillian@arctaris.com.
About Tavros Holdings, LLC:
Tavros is a privately-owned real estate investment management
and development firm. They invest on a discretionary basis, with a
strong focus on New York City, and a global investor base of family
offices, trusts, high net worth individuals, and institutions. Core
to the Tavros discipline is the quality of its partnerships with
tenants, investors, and lenders. As an owner and property manager,
Tavros aims to ensure a positive experience for its tenants through
attention to detail and a focus on quality of life.
About Charney Companies:
Founded in 2013, Charney Companies is a fully integrated real
estate development, construction, brokerage, and management firm
with a focus on developing, owning, and operating first-class
residential and commercial real estate in the New York City Metro
area. From ground-up construction to adaptive reuse and value-add
repositioning, Charney plays an integral role in all aspects of the
development process and leverages the expertise and experience of
their principals to deliver superior products to the marketplace
and best-in-class returns for their investors. Charney owns,
operates, and is under construction on two million square feet
throughout Brooklyn and Queens, and has won awards and
accommodations from municipal organizations and media outlets for
their work over the last 5 years. For more information, visit:
https://charneycompanies.com/.
Legal Disclaimer Certain information contained in this
press release constitutes forward-looking statements. These
statements reflect prevailing conditions and our best business
judgment as of the date of issuance. As a result, actual results
may vary from the projections, and it should not be relied upon as
investment advice.
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Lillian@arctaris.com