The Rabsky Group closed on a massive loan to refinance its Downtown Brooklyn project at 625 Fulton Street.
Simon Dushinsky’s firm scored $765 million in debt to refinance the multifamily complex at the corner of Fulton Street and Rockwell Place, the Commercial Observer reported. JPMorgan Chase provided the debt in the form of a balance sheet loan, arranged by Galaxy Capital’s Henry Bodek.
The loan was first reported by The Promote. JPMorgan Chase and Rabsky did not return requests for comment from the Observer.
The bank debt replaces a $555 million construction loan provided by Madison Realty Capital last year. Madison Realty also provided $450 million to the developer for the project back in 2021.
Forest City Enterprises sold the development site to Rabsky for $158 million in 2015, after 26 years of ownership. The sale came two years after Forest City demolished a 359,000-square-foot office building on the property.
Rabsky bought a neighboring property for $68 million in 2017, expanding the assemblage to make the two-tower project a possibility.
The recently completed 35-story multifamily development consists of 1,102 units, split between 303 studios, 475 one-bedroom units and 324 two-bedroom units; 30 percent of the apartments are set aside as affordable housing. There’s also 54,000 square feet of retail space, anchored by Germany grocery chain Aldi.
In November, Rabsky and Joel Gluck’s Spencer Equity Group took over the long-term ground lease at 356 Fulton Street from Gary Barnett’s Extell Development in a $39 million deal. The frequent partners picked up the site, plus two neighboring parcels and air rights, for a total of $56 million.
The pair plan to develop a massive residential project with about 200 condos, 299 rental units and 20,000 square feet of commercial space at a cost of roughly $400 million, per a TASE filing.
Rabsky also recently filed plans for a 24-story, 106-unit project at 65 Franklin Street in Tribeca, replacing a previously proposed 20-story, 89-unit development.
— Holden Walter-Warner
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