Goose Lands Construction Loan For Arrow Linen Site
Goose Property Management landed a construction loan for its controversial residential project at the former Arrow Linen site in Park Slope.
Affinius Capital provided $143 million for the four-building development site at 441-467 Prospect Avenue, according to property records. The loan, first reported by PincusCo, replaced a $5.4 million loan from Citibank issued to the previous owner in 2013.
Yitzchok Katz’s firm paid $55 million last month to acquire the site from the Arrow Linen Supply Company. The family-owned laundry rental business initially planned to redevelop the site itself with Apex Development but cooled on the project after its chief executive officer died in May.
After a controversial rezoning process, Apex won approval from the City Council last year to rezone the site for a 250-unit residential building on the condition that 40 percent, or 100 of the units, were made affordable to households making, on average, 60 percent of the area’s median income.
But before the sale closed, Goose filed plans for four 10-story residential buildings with over 396 units ranging from studios to two-bedroom apartments. The plans called for 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 director of the firm handling construction told TRD in August.
“A change in ownership does not erase the commitments made to the Windsor Terrace community,” local Council member Shahana Hanif said in a statement after Katz filed his plans. “I met with Goose Property Management and made it clear that the CBA is the floor.”
The developer appears poised to avoid New York’s 485x wage floor by dividing the project into four 99-unit towers.
Arrow Linen, founded in Brooklyn in 1947 by Sicilian immigrant Ambroglio Magliocco, plans to move the laundry operations elsewhere. The company provides clean uniforms, linens, towels and aprons to restaurants and hotels in New York and New Jersey.
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