MacArthur Holdings signs $65M construction loan for 158-unit project in Gowanus

MacArthur Holdings through the entity 2201 Union LLC as borrower signed a new construction loan with lender Bank Hapoalim through the entity Bank Hapoalim B.M. valued at $65 million for the 158-unit project at 450 Union Street in Gowanus, Brooklyn.

On the lot, there is one active new building construction project, B00591118, for a 158-unit, 142-278 square-foot residential (R-2) building. The project was submitted by Rob Rieger with plans filed September 24, 2021 and permitted April 4, 2022.

The loan closed on July 22, 2025 and was recorded on August 1, 2025. The prior lender was Israel Discount Bank which held debt that had an original loan amount of $25 million.

The owner bought the property on September 14, 2022, for $40.6 million. The signatory for MacArthur Holdings was Howard Katz . The signatory for Bank Hapoalim was Mimi Vu and Yaro Portuhay .

The property

The parcel has frontage of 80 feet and is 300 feet deep with a total lot size of 28,500 square feet. The lot is irregular. The zoning is M1-4/R7-2 which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 3.44 times FAR for residential. The city-designated market value for the property in 2022 is $2.2 million. The most recent loan totaled $20 million and was provided by Israel Discount Bank on September 14, 2022.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $1,000 in ECB penalties and $4,600 in OATH penalties in the last year.

The neighborhood

In Gowanus, The bulk, or 46 percent of the 9.2 million square feet of commercial built space are industrial buildings, with elevator buildings next occupying 19 percent of the space. In sales, Gowanus has 2.6 times the average sales volume among other neighborhoods with $719 million in sales volume in the last two years and is the 7th highest in Brooklyn. For development, Gowanus has 1.5 times the average amount of major developments relative to other neighborhoods and is the 6th highest in Brooklyn. It had 2.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 23 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the four commercial properties representing 9,880 square feet of the 9,880 square feet. The two identified owners are Tankhouse and Rabsky Group.
On the tax block, there were three new building construction projects totaling 302,401 square feet. The largest is a 164-unit, 153,506 square-foot residential (R-2) building submitted by Rabsky Group and filed by Rafael Rabinowitz with plans filed January 3, 2022 and permitted May 6, 2022. The second largest is a 93-unit, 79,896 square-foot residential (R-2) building submitted by Rabsky Group and filed by Rafael Rabinowitz with plans filed February 10, 2022 and permitted February 2, 2024.

The majority, or 100 percent of the 9,880 square feet of built space are mixed-use buildings, with industrial buildings next occupying 0 percent of the space.

The borrower

The PincusCo database currently indicates that MacArthur Holdings owned at least four commercial properties with eight residential units in New York City with 85,285 square feet and a city-determined market value of $26.6 million. (Market value is typically about 50% of actual value.) The portfolio has $7 million in debt, borrowed from Dime Community Bank. Within the portfolio, the bulk, or 92 percent of the 85,285 square feet of built space are retail properties, with walkup properties next occupying 8 percent of the space. The bulk, or 83 percent of the built space, is in Manhattan, with Brooklyn next at 17 percent of the space.

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