The Jay Group has secured $105 million in financing to support the development of two Downtown Brooklyn multifamily buildings. The group is looking to capitalize on the city's updated tax code provisions.
The two properties will fill 99 units each, as reported by The Real Deal. BHI and Israel Discount Bank are providing the construction loan, with Arrow Real Estate Advisors arranging the deal.
Both properties appear to be a part of a broader five-building luxury project across multiple lots that calls for 450 total units. Jay Group filed those plans in 2024, according to The Real Deal. Likewise, the news outlet said that the units are spread across multiple buildings due to the terms in the 485x tax break, which require paying a $40 minimum wage for work on buildings with at least 100 planned units.
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The tax break, adopted into law in April 2024, supports projects in certain NYC neighborhoods, including Jay's two developments. It's unclear which particular buildings qualified for the construction financing, but the list of the five buildings includes 165 Willoughby Street, 287 Flatbush Avenue Extension, and 104-106 Fleet Place.
Multifamily in NYC is off to a hot start in 2025. In the first quarter, Ariel Property Advisors reported that total dollar volume surged by 62 percent year-over-year to $2.21 billion in the metro. Dollar volume was particularly strong in Brooklyn, which skyrocketed by 138 percent to $1.06 billion, nearly half the total sales in the entire market. Also, the transactions of 269 in all of NYC were up by five percent.
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