The former Arrow Linen Supply site on Prospect Avenue cleared a contentious rezoning fight in March 2025. Now the developer says interest rates are blocking construction — the political win didn't move the money.

The former Arrow Linen Supply site on Prospect Avenue in Park Slope spent the better part of 2024 as one of Brooklyn's highest-temperature zoning fights — packed hearings, a community board no vote in October, a Borough President endorsement conditioned on more affordability, and a compromise that scaled back building height and deepened the affordable share before the City Council signed off on March 17, 2025.

Sixteen months later, the site hasn't moved. The developer told The Real Deal that interest rates are the reason.

It is a pattern that has become routine across New York's residential pipeline: entitlements won, rezonings banked, construction loans that still won't pencil. The friction isn't political anymore — it has relocated to the financing stage, where borrowing costs above seven percent can quietly freeze a project that survived years of public hearings. A rezoning requires political capital; a construction loan requires a math that works.

The Arrow Linen fight drew outsized attention because Park Slope is among Brooklyn's most resistant neighborhoods to new density, and the negotiated compromise — shorter buildings, more affordable units than the original proposal — was cited as a template for how contested rezonings could close. What it could not guarantee was that the deal would build.

The Real Deal reported the developer's comments this week. Brownstoner flagged the story in its July 14 daily links.