#United States #Real Estate #Brooklyn #RFR #Gowanus

RFR Completes Sale of Gowanus Development Site

On May 2, 2025, RFR announced the successful sale of its significant development site located at 175 3rd St. in the Gowanus neighborhood of Brooklyn. The site, measuring 139,865 square feet, was sold to Tavros Capital and Charney Companies for a staggering $160 million. This area is one of the largest available development sites in the newly rezoned Gowanus submarket, making this transaction particularly noteworthy.

Investment and Development Strategy

RFR showcased its strategic foresight by recognizing the potential of the Gowanus area early on. Aby Rosen, co-founder of RFR, remarked, "We've always made our mark by staying ahead of the curve. With Gowanus, we recognized the potential early. We secured critical tax incentives, pushed forward a best-in-class design, and positioned the project to meet the area's surging demand for housing. The result was a standout development opportunity — the kind of value creation we're known for."
Through its extensive pre-development stewardship, RFR transformed the site into a fully entitled development opportunity, paving the way for future housing projects in this thriving neighborhood.

Over the years, RFR enhanced the value of the site through partnerships with world-renowned design firms such as the Bjarke Ingels Group. Their involvement yielded a series of innovative design solutions that attracted interested developers. Additionally, RFR navigated the complexities of zoning and permitting to secure an extension of the 421a tax abatement, a significant benefit to future projects.

Environmental Remediation and Site Preparation

Another crucial aspect of RFR's stewardship included managing an extensive environmental remediation program effectively. They also obtained necessary excavation and foundation work permits, ensuring the site was primed for development. The successful management of the Brownfield Credit Program opened doors to critical tax incentives, making the project even more appealing to investors.

Past Acquisition and Market Trends

RFR acquired the three-acre site for $115 million in 2018, prior to the city's rezoning that allowed for an increase in multifamily developments. Their vision involved repurposing this site, previously an industrial hub, into a vibrant residential community as part of the Gowanus Opportunity Zone initiative.

As urban space becomes increasingly scarce, the Gowanus neighborhood has been recognized for its potential to address New York City's housing crisis—a factor that undoubtedly made the site attractive to Tavros Capital and Charney Companies.

Projections for Future Development

The sale also signals a transition toward future developments in the Gowanus area, which anticipates a rising demand for urban residential spaces. Considering RFR's successful management and profit realization from this project, it is likely that the new owners will continue to capitalize on the surrounding area's burgeoning real estate market.

About RFR
Founded in the early 1990s by Aby Rosen and Michael Fuchs, RFR is a New York-based integrated real estate investment firm with a keen focus on key urban markets in the United States and Germany. Over the past three decades, RFR has built a diverse portfolio, encompassing more than 100 properties across various domains, including commercial, residential, hotel, and retail sectors.

For further inquiries, reach out to Great Ink Communications, Ltd. at 212-741-2977.

This major sale underlines the evolving landscape of Brooklyn real estate and emphasizes how developers can innovate in urban environments to meet housing demands.