Brightshore Capital Buys LIC Apartments with $98.5M Loan

Brightshore Capital has expanded its multifamily footprint in New York City with the acquisition of DŌMI, a recently completed 190-unit residential property in Long Island City, Queens. This strategic purchase, facilitated by a substantial $98.5 million financing package from Affinius Capital, underscores the firm's commitment to high-demand urban markets. The deal marks the inaugural collaboration between Brightshore and Affinius Capital, signaling a new partnership in real estate investment.

The DŌMI property, situated at 29-24 40th Avenue in the Dutch Kills area, comprises two modern towers offering approximately 125,000 square feet of living space and an additional 4,876 square feet dedicated to retail. This mixed-use development includes 133 market-rate apartments and 57 units designated as affordable housing, addressing a critical need within the city's housing stock. The property also benefits from the 421-a Affordable New York program, providing a significant 35-year exemption on property taxes, a key incentive for long-term ownership.

This acquisition is channeled through Brightshore's Opportunity Zone Fund II, aligning with the firm's broader strategy to leverage federal tax incentives for real estate development and revitalization. The fund has amassed approximately $900 million across its first two vehicles, with Brightshore recently initiating its third Opportunity Zone fund to capitalize on future investment phases. The firm's total assets under management now approach $5.6 billion across diverse real estate sectors.

Residents at DŌMI enjoy a suite of premium amenities, including a landscaped courtyard, a rooftop terrace with panoramic views of the Manhattan skyline, a state-of-the-art fitness center, a dedicated coworking lounge, and various entertainment spaces. The property's prime location offers exceptional connectivity, with multiple subway lines providing swift transit to Midtown Manhattan in roughly 15 minutes. This accessibility is a significant draw for professionals seeking convenient commutes to major employment hubs.

Brightshore Capital anticipates strong performance driven by Long Island City's persistent housing demand, its proximity to key economic centers, and the inherent limitations on new residential construction in the area. The acquisition was brokered by Newmark, which also advised on the financing arrangement. The sellers in this transaction were a joint venture including SB Development, Hazelton Capital Group, and Avenue Realty Capital.

The acquisition of DŌMI represents a calculated move by Brightshore Capital, as highlighted by Partner Rob Vahradian, who noted the property's quality and Long Island City's dynamic growth. Partner Ed McDowell further emphasized the asset's appeal within the Opportunity Zone framework, citing the reduced development risk and the property's strategic positioning to meet New York City's substantial housing requirements, encompassing both market-rate and affordable segments.