MF1 Capital Supplies $62M Construction Takeout for Gowanus Resi Tower

Borough Developers has sealed $62 million of takeout construction financing for a newly completed multifamily development in Gowanus, Brooklyn, Commercial Observer has learned.

MF1 Capital provided the loan for the development firm’s 11-story The Baltic Canal apartment building at 526 Baltic Street. The deal retires a previous construction loan from BridgeCity Capital for the 99-unit property in an area along the Gowanus Canal that was rezoned in 2021 to enable denser development. 

Landstone Capital Group arranged the takeout construction loan with a team led by Leah Paskus and Shlomy Wertzberger. Michael Squires and Ben Rosenberg represented MF1 in the deal, which closed last week. 

The Baltic Canal will feature studio to two-bedroom apartment options with a portion of the units designated as affordable under the state’s expired 421a tax abatement program. Community amenities include a fitness center, a yoga studio, a sauna, a coworking lounge, a media room and a game room. 

MF1 Capital and Borough Developers did not immediately return requests for comment.

Andrew Coen can be reached at acoen@commercialobserver.com.