The Rabsky Group has sold 240 Willoughby Street as the multifamily development project nears completion.
A joint venture of Fetner Properties, MCB Real Estate and Farallon Capital acquired the Fort Greene multifamily development for $209.5 million, Fetner announced on Thursday. With 463 units, the deal breaks down to more than $453,000 per unit.
The joint venture purchased and assumed the property’s ground lease. A $141.5 million senior loan from M&T Realty Capital funded the acquisition.
“We’re very bullish on New York City, and this acquisition is another step in our continued commitment to provide quality affordable and market-rate housing to the city,” said Hal Fetner in a statement.
Leasing was launched at the Brooklyn building in anticipation of the acquisition around Memorial Day. About a quarter of the units have been leased since at 240 Willoughby, which includes 147 affordable housing units.
Unit types for the building range from studios to two-bedrooms. The property includes 30,000 square feet of amenities, including a business lounge, yoga studio, fitness center, bike room, screening and karaoke room, pet spa and dog run, video game and sports simulator rooms and more.
Rabsky could not be reached for comment.
A JLL team including Jeffrey Julien, Rob Hinckley and Steven Rutman arranged the sale, while JLL’s Christopher Peck, Peter Rotchford, Nicco Lupo negotiated the financing.
Three years ago, Simon Dushinsky’s Rabsky secured a $72 million construction loan from SCALE, the lending arm of Slate Property Group, for work on the property. It bought the land for $95 million in 2019 from the Brooklyn Hospital Center; it eventually sold the ground lease to Dallas-based investor Montgomery Street Partners for $75 million, but simultaneously signed a 99-year lease on the property.
Elsewhere in Fort Greene, Mendel Berkowitz’s Borough Developers recently signed a 99-year ground lease with John Mullins & Sons to take control of a 19,000-square-foot corner assemblage on Fulton Street, where it plans an 81,000-square-foot development with rentals and ground-floor retail.
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