Brooklyn Industrial Site Sold for 396-Unit Development
A former linen facility in Brooklyn will be transformed into four 10-story residential buildings.
Updated on Sept. 29, 2026 in Commercial
Live Poll
Should local housing developments be required to prioritize affordable units over total unit counts?
Arrow Linen Supply Company sold its industrial site at 441-467 Prospect Avenue in Brooklyn to Goose Property Management for $55 million. The developer plans to replace the former facility with 396 new residential units housed in four 10-story buildings.
Why it matters
The sale follows the May 2026 death of long-time Arrow Linen CEO John Ambrose Magliocco, leading shareholders to pivot away from the development project. This transition marks the end of a long-standing local operation to make way for a significant increase in area housing stock.
The development will feature 396 total units across four 10-story buildings, aiming for a 40 percent affordable housing target. Plans utilize the 485-x tax incentive to support this density increase.
The players
Arrow Linen Supply Company
A long-standing Brooklyn-based industrial textile and linen service provider established in 1947.
Goose Property Management
A real estate development firm managing the transition of the Prospect Avenue site into residential housing.
John Ambrose Magliocco
The late CEO who led Arrow Linen for decades until his death in May 2026.
New York City Council
The local legislative body responsible for municipal land-use and rezoning approvals.
The details
Goose Property Management recently filed plans to expand the project scope significantly beyond the initial rezoning approval. The site, formerly used for industrial laundry operations since 1947, requires a complete repurposing for residential use following the February 2025 city-approved rezoning. The developer intends to leverage the 485-x tax incentive program to manage the construction costs and affordability requirements of the four-building complex.
Timeline
1947: Arrow Linen began operations in Brooklyn.
February 2025: City Council approved site rezoning.
May 2026: CEO John Ambrose Magliocco died at age 96.
September 28, 2026: The property was sold for $55 million.
The Home Front
This development represents a significant shift from industrial land use to high-density residential housing in a historically commercial area. The project follows the pattern of developers utilizing the 485-x tax incentive to offset the costs of residential conversion projects in dense urban areas.
Residents in the Prospect Avenue area should monitor upcoming community board meetings regarding the construction phase and project staging. Property owners nearby may wish to track local infrastructure updates as the transition from an industrial facility to a 396-unit complex progresses.
The takeaway
The transformation of this site reflects a broader trend of repurposing legacy industrial land for residential use in the city. Keep an eye on public hearing notices for this address to understand how local traffic and parking patterns might adjust during the multi-building construction phase.
Further reading
Learn more about local real estate trends at Commercial.
Source note: This article includes information reported by Commercial Observer.
Live Poll
Should local housing developments be required to prioritize affordable units over total unit counts?
