Goose Acquires Stalled Arrow Linen Project in Park Slope
Goose Property Management has inked a deal for the controversial Park Slope site where it’s planning a 250-unit residential project.
Yitzchok Katz’s firm this week paid $55 million to acquire 441-467 Prospect Avenue in Brooklyn from the Arrow Linen Supply Company, the Commercial Observer reported. The family-owned laundry rental business cooled on redeveloping the site with Apex Development after its chief executive officer died in May.
JLL’s Mike Mazzara, Ethan Stanton and Brendan Maddigan represented the sellers in the deal.
Goose filed plans with the Department of Buildings two months ago for four 10-story residential buildings at 441 Prospect Avenue.
Katz’s firm has expanded the project to over 396 units ranging from studios to two-bedroom apartments. It intends to include around 100 affordable units — lowering the share from the previous proposal to about 25 percent — but negotiations about the number of affordable units are ongoing.
The developer appears poised to avoid New York’s 485x wage floor by dividing the project into four 99-unit towers on the lot, rather than a single 396-unit building. Under state law, developers building 100 units or more can only qualify for a property tax abatement if they pay a construction wage of at least $40 per hour.
Developers have avoided the wage requirement by building several 99-unit buildings — just under the 100-unit threshold — often right next to each other.
Apex, the previous developer, won approval from the City Council last year to rezone the site for a 250-unit residential building on the condition that 100 of those were made affordable to households making, on average, 60 percent of the area’s median income. The agreement remains a source of consternation for local lawmakers.
“A change in ownership does not erase the commitments made to the Windsor Terrace community,” local Councilmember Shahana Hanif said in a statement last month after the plans were filed. “I met with Goose Property Management and made it clear that the CBA is the floor.”
Arrow Linen, founded in Brooklyn in 1947 by Sicilian immigrant Ambroglio Magliocco, plans to move the laundry operations elsewhere.
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