Arrow Linen sells stalled Park Slope site to Goose Property for $55M

Arrow Linen Supply Company has sold 441–467 Prospect Avenue, the Park Slope assemblage it had rezoned for housing, to Yitzchok Katz's Goose Property Management for $55 million, according to JLL, which represented the seller. Mike Mazzara, Ethan Stanton and Brendan Maddigan worked the transaction for the brokerage and dealt directly with the buyer, which did not use an outside broker.

The land carried an entitlement the laundry rental business spent years assembling: the City Council approved a rezoning in February 2025 permitting two housing structures with 250 units at the site. The project then stalled in May, when John Ambrose Magliocco, Arrow Linen's chief executive and majority shareholder, died at 96, having run the company since 1958 after taking over from his father Ambrogio, a Sicilian immigrant who started it at 17. In a statement, a company spokesperson said the remaining shareholders elected after his unexpected passing to no longer be part of the site's development, and expressed confidence that the new owner would bring badly needed homes to Brooklyn, affordable ones included; Arrow Linen has called Brooklyn home since 1947, the spokesperson said.

The buyer is not building the entitlement as approved, and in August, before the sale closed, Goose filed plans with the Department of Buildings to expand the project from two 10-story buildings to four of 99 units each, 396 in total, likely drawing on the 485-x tax incentive, The Real Deal reported at the time. Gerald J. Caliendo Architects appears to be the designer on the earlier design, which would have put 100 affordable units between the existing prewar structures facing Prospect Avenue.

Divide the $55 million price by the 250 units the rezoning permits and the land clears at $220,000 a unit; divide it by the 396 units Goose has filed for and the basis falls to roughly $139,000. That spread is why a stalled entitlement drew a buyer. In this market the cost of assembling a site is what determines the exit — our reporting on a $99 million Upper East Side construction loan found it running $34.5 million over the parcels' combined $64.5 million acquisition cost, with the sellout risk left with the sponsors — and a buyer who can add 146 units to an approved plan is effectively repricing the land, not the buildings.

The affordable count is the open item. Shahana Hanif, who represents the district in the City Council, said in an Instagram post this week that she remains committed to ensuring 40 percent of the housing is affordable, that the development mixes bedroom sizes to accommodate families and that community facility space is provided on-site. Whether the 396-unit program raises or lowers the affordable total is not yet clear from the plans, and the 40 percent figure is her stated aim rather than a term the coverage attributes to the rezoning.

The sale converts the entitlement Arrow Linen's remaining shareholders had elected not to build into cash roughly four months after Magliocco's death and closes out a Brooklyn story that began with a Sicilian immigrant's laundry route. For Goose, the number to watch is the affordable unit count in whatever it files next at 441–467 Prospect Avenue.