At a glance
- The debt is about 66% loan-to-price, or roughly $518,000 per unit.
- DŌMI occupies 29-24 40th Avenue in the Dutch Kills section.
- The project drew capital from Brightshore's Opportunity Zone Fund II, part of an effort to raise roughly $900 million across two funds for properties in economically distressed areas.
Brightshore Capital bought the 190-unit DŌMI apartment complex in Long Island City, Queens, for $150 million, with Affinius Capital providing $98.5 million of acquisition debt, Commercial Observer first reported.
The debt is about 66% loan-to-price, or roughly $518,000 per unit. Brightshore, a $5.6 billion manager formerly known as GTIS Partners, bought the property from a joint venture of SB Development, Hazelton Capital Group and Avenue Realty Capital.
DŌMI occupies 29-24 40th Avenue in the Dutch Kills section. It has two towers with 133 market-rate and 57 affordable apartments and nearly 4,900 square feet of retail. It opened in October, and residents began moving in last month.
The project drew capital from Brightshore's Opportunity Zone Fund II, part of an effort to raise roughly $900 million across two funds for properties in economically distressed areas. The building was developed with New York State's now-defunct 421-a affordable housing tax abatement.
For allocators weighing opportunity-zone vehicles during that raise, DŌMI shows the strategy in completed form: the fund is buying a building that is already open and leasing.
Partner Ed McDowell said the acquisition lets Brightshore buy a newly built property while substantially reducing the entitlement and construction risk that comes with ground-up development.
Affinius's David Greenburg cited the shortage of new residential supply in New York City and the difficulty developers face finding land. Brightshore partner Rob Vahradian cited Long Island City's sustained residential expansion and its location across the East River from Midtown Manhattan.
Reported by the Deals desk from Commercial Observer. Published . Corrections