Domain Companies Secures $205M Financing for 420 Carroll Street

The Domain Companies just landed a $205 million refinancing for its newly completed mixed-use development in Gowanus, Brooklyn.

The bridge takeout loan was issued by AllianceBernstein to retire existing debt and shore up 420 Carroll Street’s finances.  

The building opened to new residents in February and was a product of the 2021 rezoning of the Brooklyn neighborhood, according to Domain.

The firm was ahead of the curve when it acquired the property as a warehouse along the Gowanus Canal in 2018 with a $38 million financing package, then built  21-story and 16-story towers with 360 housing units and 27,000 square feet of retail space. Domain partnered in the development with Silverstein Properties. 

“This new financing package demonstrates the success of 420 Carroll, a state-of-the-art project that delivered hundreds of much-needed homes, new opportunities for retail and beautiful public outdoor space to Gowanus,” Matt Schwartz, co-CEO of The Domain Companies, said in a statement. “It also represents a vote of confidence in the project, underscoring the demand we’ve seen during the lease-up of the building.”

JLL’s Christopher Peck, Peter Rotchford and Nicco Lupo negotiated the loan on behalf of Domain and Silverstein, while a  Newmark team represented the lender.

“Working with such elite development partners made this financing exceptionally smooth,” Peck said in a statement. “420 Carroll Street stands as a pioneering development, and this transaction represents the first takeout financing in Gowanus, a significant milestone and catalyst for the neighborhood’s continued transformation.”

Newmark did not immediately respond to a request for comment.

The rezoning of Gowanus was the product of eight years of debate in city government. New rules allowing for greater residential development eventually passed by a nearly unanimous vote in New York City Council in the final days of former Mayor Bill de Blasio’s time in office.

The neighborhood plan allowed developers to build up to 22 stories of housing as of right, with  public waterfront access to the canal once environmental cleanup is completed.

Mark Hallum can be reached at mhallum@commercialobserver.com.