BROOKLYN, NEW YORK — The Domain Companies, a leading real estate and development firm based in New York City, in partnership with the Urban Investment Group within Goldman Sachs Asset Management (Goldman Sachs), Mega Contracting, and VOREA Group, announced the closing of a $142 million construction loan with U.S. Bank for Majestic, located at 540 DeGraw Street in Brooklyn’s rapidly growing Gowanus neighborhood. The closing marks the continuation of Domain’s expansion within the New York market, with Majestic emerging as Domain’s fourth large-scale, sustainable, mixed-use and mixed-income property to commence construction in the city in the past 18 months.
The $230 million, 12-story development features 268 units, with 25% of the apartments allocated as affordable housing serving households between 40% and 100% Area Median Income. The project includes 18,000 square feet of ground floor commercial that will be programed with a mix of food and beverage and neighborhood retail. Domain has partnered with Arts Gowanus to provide dedicated studio space for local artists as part of the “Gowanus Mix” portion of the space pursuant to the rezoning. The project will utilize New York City’s 421-a tax abatement program and is anticipated to be complete by 2025.
With stunning interior design, unique architecture, rich amenities, and sustainable energy-efficient design, Majestic will make a mark in the highly-desirable neighborhood. Residents will enjoy multiple indoor and outdoor amenities including a clubhouse and fireplace lounge, state-of-the-art fitness center, children’s playroom, shared workspace with dedicated outdoor space and several outdoor green spaces including outdoor kitchens, a children’s play area and a dog run. Majestic will include 24/7 concierge service, smart-home technology, on-site parking, bike storage, and the MyDomain suite of resident services offered at all Domain properties. Sustainability measures include targeting LEED Platinum certification, green roof, cogeneration, water reuse, electric vehicle charging stations, and more.
As the best inland Gowanus site, situated directly adjacent to Thomas Green Park, Majestic residents will benefit from of the park’s forthcoming redevelopment and expansion. The city will create 1.6-acres of adjacent new parkland across Nevins Street and along the canal promenade. Enhancements to Thomas Greene Park include an expanded pool and pool house, playground, greenspace, and sports facilities. The site offers convenient access to local retail, highly ranked schools, and well-known restaurants.
Domain has over 1.8 million gross square feet in development in New York City, totaling over $1.2 billion, with 1,659 apartments in Mott Haven, Bronx; Gowanus, Brooklyn; and Hunter’s Point, Long Island City, including nearly 500 units set aside as affordable housing. As one of the most active developers in NYC, Domain is aggressively pursuing opportunities in the country’s most populated market, focusing on sustainability, community engagement, and exceptional design, architecture and hospitality. Each development is located within one of New York’s most rapidly growing and sought-after submarkets– surrounded by renowned restaurants, cultural institutions, and outdoor amenities- and steps from public transit. Each development will be positioned among the best housing product anywhere in New York, featuring comprehensive amenity programs that support work-from-home and prioritize wellness. Each is mixed-income, serving a range of household types, and incudes a significant commercial component to support neighborhood retail and services. Most importantly, community engagement is at the heart of each project pre-construction and a core priority after opening.
Domain worked closely with a number of community organizations to ensure that all new projects support the local community and existing residents. Those organizations include the Gowanus Canal Conservancy, to help stewardship of the Gowanus Watershed, and Friends of Thomas Green Park, to support the ecological and economic uses of the park. Participation in Domain’s MyCommunity program, which supports local nonprofits and coordinates volunteer opportunities throughout the year, will also be available to all residents in all developments.
“It’s incredibly exciting to advance another project in Gowanus and New York City,” said Matt Schwartz, Co-CEO of Domain Companies. “The Majestic is the culmination of over five years of close collaboration with the Gowanus community. Our team is looking forward to delivering the highest quality housing and amenities for the community to enjoy for generations”
“We’re thrilled to be moving one step closer to delivering Majestic to the Gowanus community,” said Hercules Argyriou, of Mega Contracting Group. “Majestic will provide the local community with superior quality housing, including affordable housing options, with great amenities, retail, and community spaces, further adding to the neighborhood’s rapidly growing and vibrant character. We are very fortunate to be partnered with the Domain Companies, UIG, and VOREA Group to bring this project to life.”
Financing was arranged by JLL Real Estate Capital. Mega Contracting will serve as the general contractor. Handel Architects is the project architect and Good Rich is responsible for interior design. Majestic takes its name from Majestic Quality Products, a manufacturer of lighting fixtures that constructed a building on the site in 1950.
About Domain Companies
The Domain Companies is one of the nation’s leading real estate development and investment companies specializing in sustainable, mixed-use development. Founded in 2004, Domain is based in New Orleans and New York and specializes in the development and management of unique, mixed-use properties in core urban locations. Domain creates high-quality properties that stand apart through innovative design and exceptional management, enhancing the communities in which they build. Projects include the new construction and preservation of affordable, mixed-income, and luxury housing; the acquisition and repositioning of distressed housing; historic restoration; brownfield redevelopment; seniors and special needs housing; and hospitality, retail, and commercial development. Domain has been involved in over $2 billion of impactful, mixed-use real estate across a diverse range of product types and markets www.thedomaincos.com
About Mega Contracting Group
Mega Contracting Group is a full-service Development, General Contracting, and Construction Management firm with a tradition of excellence and commitment to hands-on construction management. The Company was founded in 1990 with the goals of building a reputable and reliable construction company. Mega has assisted in the development of more than 9,000 units of affordable and market rate housing, as well as construction of infrastructure and civil projects, adding a variety of unique public projects, market rate residential and commercial development projects to their portfolio.
About the Goldman Sachs Asset Management Urban Investment Group (UIG)
Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), we deliver investment and advisory services for the world’s leading institutions, financial advisors and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market—overseeing more than $2 trillion in assets under supervision worldwide as of June 30, 2022. Driven by a passion for our clients’ performance, we seek to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Goldman Sachs Asset Management invests in the full spectrum of alternatives, including private equity, growth equity, private credit, real estate and infrastructure. Established in 2001, the Urban Investment Group within Goldman Sachs Asset Management has committed over $10 billion through real estate projects, social enterprises and lending facilities for small businesses and students, creating economic value and opportunities for underserved communities and families. Follow us on LinkedIn.
About VOREA Group
The VOREA Group (VOREA), established in 2009, is a multifaceted real estate company, equipped to perform mid to large scale development projects throughout the Tri-state area. VOREA’s uniquely vertically integrated enterprise includes a thesis-based investment team, a construction management division focused on marrying best-in-class management with best-in-class technology, and an end user platform focused on weaving small business into the fabric of community. VOREA’s corporate culture is defined by its Core Values of accountability, critical thinking, efficient execution, innovation and teamwork.