Canada’s H&R REIT has purchased a 75% stake in a large multi-residential development site in Brooklyn, N.Y. for US$76.5 million, according to multiple published reports.

H&R acquired majority ownership from All Year Management, which has retained a 25% interest.

A former gas plant, the property is located at 459 Smith Street along the Gowanus Canal. Plans call for a 360-unit residential complex ranging from eight to 25 storeys.

Construction began in 2022 but All Year has struggled with debt that it could not repay. All Year bought the site for US$48 million in 2017.

Public records indicate that Fairfax Associates took over a loan from Vichar on the day of the sale to H&R.

The REIT could develop up to 723,742 square feet of residential units and 12,773 sf of retail spaces along with 33,000 of public waterfront access. H&R has not commented on the reports.