Rabsky Group JV Secures $ 450 Million Loan for Brooklyn Project
The Rabsky Group has secured a $ 450 million construction loan to complete the development of a 35-story, 1,098-unit mixed-use multi-family property at 625-635 Fulton St. in downtown Brooklyn. Madison Realty Capital initiated the financing on behalf of the promoter.
Henry Bodek of Galaxy Capital served as broker for the transaction. More details on the funding were not disclosed. The property is being developed by The Rabsky Group, one of the largest residential and commercial developers in Brooklyn and Queens, led by co-founders Simon Dushinsky and Yadler Rabinowitz. Joel Gluck’s Spencer Equity made a significant contribution in construction liquidity. The amount of the equity investment was not disclosed.
Located at the intersection of Flatbush Avenue, the property will have two interconnected residential towers atop a five-story podium. The asset will have 590,096 square feet of residential space and 25,988 square feet of retail space along Fulton Street, 250 parking spaces and 150 storage units.
An earlier version of the plan featured a much taller structure that included 739,000 square office spaces and 902 residential units. The new plan will include 342 studios, 492 one-bedroom units and 264 two-bedroom units. Thirty percent will be affordable through the Affordable New York program. A portion of the affordable housing will be part of the inclusive housing program for low-income residents.
Amenities will include a fitness center, spa, recreation areas, lounges, an outdoor rooftop pool with views of Manhattan and Brooklyn, and in-unit washers and dryers.
Josh Zegen, managing director and co-founder of Madison Realty Capital, said in prepared remarks that downtown Brooklyn has become one of New York’s fastest growing residential markets and is growing expects high-quality multi-family options like the Fulton Street project to be quickly absorbed.
He also noted that the market has become a hub for technology and innovation and is home to 25% of New York-based tech companies. The property is located in the Brooklyn Tech Triangle, an area comprising of downtown Brooklyn, DUMBO, and the Brooklyn Navy Yard.
Previous loan transactions
In February, Madison Realty Capital made a $ 106 million construction loan to Arch Cos. and AB Capstone to develop Myrtle Point, a 17-story mixed-use tower at 3-50 St. Nicholas Ave. along the Brooklyn-Queens border. The 284,000 square foot building will include 133 residential units, 30% of which will be affordable, and 130,000 square feet of retail space on a four storey basis.
A month earlier, the company granted a $ 53 million construction loan to Heritage Equity Partners to begin development of a 150-unit multi-family property at 875 Fourth Ave. in the South Park Slope neighborhood of Brooklyn.