D
eveloper Yitzchok Katz has closed on a deal to buy a Gowanus development site from Jack Elo's Elo Organization for $22 million. The vacant lot at 172 Third Avenue was purchased by an LLC tied to Katz's Goose Property Management, with the sale date set for November 6, several months after the initial contract deadline of October 15. Hirschy Zaks of Venture Capital Properties brokered the deal, while financing was originated by Steven Jemal and Shawn Safdie of S3 Capital.

    The site is approximately 13,000 square feet in size, although it's likely that Katz acquired adjacent parcels assembled by Elo, including properties at 265 and 273 Douglass Street. This assemblage totals around 110,000 square feet and falls within the Gowanus area rezoned for residential development in late 2021.

    Elo had initially planned to develop a 20,000-square-foot building on the site but did not proceed with construction. Instead, he borrowed $21.5 million against the property in 2021, but failed to qualify for the multifamily tax break 421a by not putting footings in the ground. However, Katz's purchase is expected to qualify for the replacement tax break 485x.

    Katz is also in contract to buy an adjacent industrial building at 264 Butler Street, which would add approximately 52,500 square feet of development rights to his assemblage. The seller is Dominick Cappolla Jr., and the state's extension of the 421a completion deadline has kept several Gowanus sites viable for development.

    Reached by phone, Jack Elo stated that he sold the site due to time constraints, citing his current contract to purchase a Midtown building at 21 West 46th Street. Katz is CEO of Goose Property Management and son-in-law of Rabsky partner Isaac Rabinowitz, with Goose serving as a partner of Rabsky Group and managing many of their apartments.