JLL Capital Markets announced that it has successfully arranged $136 million in refinancing capitalization for 655 Union, a newly delivered, 193-unit trophy multifamily development. The mixed-use asset is located at the intersection of Union Street and 4th Avenue in the rapidly maturing Gowanus neighborhood of Brooklyn.
The JLL debt advisory team worked on behalf of the joint venture borrowers, Avery Hall Investments and Gindi Capital, to secure the financing through Freddie Mac and CenterSquare Investment Management.
The transaction made local history as the first in New York to utilize Freddie Mac’s Lease Up program following the introduction of its “Borrow Up” feature. Under this newly announced program enhancement, sponsors who achieve Net Operating Income (NOI) improvements between the first and second year of their loan can secure additional proceeds at first mortgage pricing. This provides an efficient mechanism for developers to access increased leverage based strictly on property performance.
The Freddie Mac loan refinances an existing construction loan and will be serviced by JLL Real Estate Capital, LLC, a Freddie Mac Optigo Lender.
Delivered in 2025, 655 Union is a fully leased, 15-story, 194,454-square-foot property. Fulfilling the area’s demand for inclusive housing, the building features 143 market-rate units and 50 affordable units.
Residents have access to condo-quality finishes and a sprawling 12,000-square-foot luxury amenity package, which includes:
- A 25-yard outdoor lap pool with private cabanas
- A fully equipped fitness center, including yoga and Pilates studios
- A specialized wellness space and dedicated co-working areas
- A media room, private dining room, and sunset garden
- 24/7 doorman and concierge services
Beyond the residential component, the building holds approximately 14,764 square feet of ground-floor retail space, partially leased to Bank of America and the academic enrichment brand NY Kids Club. Situated directly above the Union Street subway station, the asset offers riders immediate access to Manhattan and greater Brooklyn.
The successful refinancing points heavily to institutional confidence in the revitalization of Gowanus. Once a heavily industrial pocket of Brooklyn, the neighborhood is experiencing an massive influx of new residents and a swelling retail and cultural scene.
“We are extremely proud to have developed amongst the best performing assets in the submarket to date, further demonstrating the continued economic maturation within Brownstone Brooklyn,” Avi Fisher, founding partner at Avery Hall Investments said. “This project truly embodies the targeted outcome we set out to achieve over half a decade ago, which was to provide high quality affordable and market rate housing product for all residents, while delivering risk adjusted appropriate returns for our investors.”
JLL Capital Markets Senior Managing Director Christopher Peck echoed that sentiment, stating that the asset’s “premium design, transit connectivity and affordable housing component created an exceptionally strong lending opportunity.”
