Found an answer to my question, and figured I'd post here in case anyone 
else was having the same issue. Apparently it's a reported bug in the 2.4.0 
gradle plugin. Bug report 
here: https://issuetracker.google.com/issues/37636107

On Friday, 5 May 2017 14:42:31 UTC-5, Iliya wrote:
>
> Hey all,
> Was checking out the latest preview of AS and the new gradle plugins and 
> started getting a Java OOM error when gradle gets to the 
> "transformNativeLibsWithMergeJniLibsForDebug" stage.
> I have seen this before but setting up more memory for java in the 
> gradle.properties file fixed it. Now it seems that this is no longer doing 
> the trick.
>
> gradle.properties
> # Specifies the JVM arguments used for the daemon process.
> # The setting is particularly useful for tweaking memory settings.
> # Default value: -Xmx10248m -XX:MaxPermSize=256m
> org.gradle.jvmargs=-Xmx8704m -XX:MaxPermSize=2048m 
> -XX:+HeapDumpOnOutOfMemoryError -Dfile.encoding=UTF-8
>
> # When configured, Gradle will run in incubating parallel mode.
> # This option should only be used with decoupled projects. More details, 
> visit
> #org.gradle.parallel=true
>
> # When set to true the Gradle daemon is used to run the build. For local 
> developer builds this is our favorite property.
> # The developer environment is optimized for speed and feedback so we 
> nearly always run Gradle jobs with the daemon.
> org.gradle.daemon=true
>
> # Configuration on demand is an incubation feature of Gradle. When enabler 
> it will make Gradle
> # configure everything on demand rather than eagerly.
> org.gradle.configureondemand=true
>
> # Android Studio 2.2 Beta 3 introduces a new build cache feature that can 
> speed up build times (including full builds, 
> # incremental builds, and instant run) by storing and reusing 
> files/directories that were created in previous builds of 
> # the same or different Android project. 
> android.enableBuildCache=true
>
> Also tried setting javaMaxHeapSize in the build.gradle file without 
> success:
>
>     dexOptions {
>         javaMaxHeapSize "6g"
>     }
>
>
>

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