Brightshore Capital has purchased DŌMI, a 190-unit mixed-income multifamily complex in Long Island City, Queens, for just over $143 million. Commercial Observer reported that the investment firm obtained $98.5 million in acquisition financing from Affinius Capital to complete the transaction.
Brightshore bought the property from a joint venture consisting of SB Development, Hazelton Capital Group, and Avenue Realty Capital. A Newmark advisory team led by Eric Roth, Daniel O'Brien, Adam Spies, and Adam Doneger handled the sale, while Newmark's Jordan Roeschlaub, Christopher Kramer, and Max Ralby arranged the debt package.
What happened
Located at 29-24 40th Avenue in the Dutch Kills section of Long Island City, the property consists of two residential towers that contain 133 market-rate apartments, 57 affordable apartments, and nearly 4,900 square feet of retail space. The project was financed using New York State's now-defunct 421-a affordable housing tax abatement. Equity for the purchase came from Brightshore's Opportunity Zone Fund II, an investment vehicle focused on properties in designated zones. Brightshore has raised roughly $900 million across two funds dedicated to acquiring and developing properties in economically distressed areas.
According to Commercial Observer, David Greenburg of Affinius Capital pointed to the lack of new residential supply in New York City and the difficulty developers face in finding land as factors supporting the financing. Ed McDowell, partner at Brightshore, noted that purchasing the completed project allows the firm to add to its Opportunity Zone portfolio while reducing the entitlement and construction risks tied to ground-up development.
What it changes for a closing
For closing teams managing transactions that combine senior acquisition debt, Opportunity Zone equity, and legacy tax programs, this deal demonstrates the specific documentation requirements at settlement. Counsel must align the terms of the $98.5 million loan from Affinius Capital with the statutory compliance rules of New York's 421-a tax abatement program. In addition, closings funded through specialized Opportunity Zone vehicles require deal teams to confirm that organizational documents, transfer certifications, and equity structures satisfy federal tax rules alongside standard commercial real estate conveyance requirements.