60 Guilders, Stockbridge Capital pays $71.5M to Rabsky Group for 113-unit Driggs in Williamsburg, part of $143M deal

Stockbridge Capital Group and 60 Guilders through the entity Stockbridge 60G Driggs 205 Owner, LLC paid $71.5 million to Rabsky Group through the entity North-Driggs Holdings, LLC for 113-unit residential elevator building (D1) The Driggs at 205 North 9th Street in Williamsburg, Brooklyn. This transaction is part of a $143.3 million deal which the Commercial Observer reported on last week. The transfers have not yet been recorded for the other two properties reported in the package, 225 North Ninth Street and 220 North 10th Street.
The deal closed on December 22, 2022 and was recorded on December 30, 2022. The property has 106,678 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $670 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The signatory for Rabsky Group was Simon Dushinsky. The signatory for Stockbridge Capital Group and 60 Guilders was 60 Guilders co-founder Bastien Broda.
The prior individual guarantors were Simon Dushinsky and Yadler Rabinowitz. The new individual guarantors are 60 Guilders co-founders Bastien Broda and Kevin Chisholm.

To finance the purchase, the buyers assumed a $45.75 million loan from Customers Bank.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the San Francisco-based Stockbridge Capital Group had purchased any other properties and has no record it sold any properties over the past 24 months in New York City.
The seller Rabsky Group purchased four properties in two transactions for a total of $19.7 million and sold one properties in one transactions for a total of $75 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Simon Dushinsky, head officer and Yadler Rabinowitz, officer. The business entities are Goose Property Management Llc and North-Driggs Holdings Llc. The 106,678-square-foot property generated revenue of $4.9 million or $45 per square foot, according to the most recent income and expense figures.

The property

The 205 North 9th Street parcel has frontage of 225 feet and is 100 feet deep with a total lot size of 22,500 square feet. The zoning is M1-2/R6A which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 3 times FAR for residential with inclusionary housing. The property has a 421A exemption that started in 2013.0 and expires in 2028.0. The city-designated market value for the property in 2022 is $22.9 million.The most recent loan totaled $45.8 million and was provided by Customers Bank on December 31, 2021.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received one DOB violation in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on October 31, 2012. There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of five of the 12 commercial properties representing 266,422 square feet of the 299,121 square feet. The two identified owners are Robert Frenkel and Rabsky Group.
On the tax block, there was one new building construction project filed totaling 6,720 square feet. It is a five-unit, 6,720-square-foot R-2 building developed by John Ziegler with plans filed March 5, 2014 and it has not been permitted yet.

the majority, or 89 percent of the 299,121 square feet of built space are elevator buildings, with mixed-use buildings next occupying 8 percent of the space.

The seller

The PincusCo database currently indicates that Rabsky Group owned at least 31 commercial properties in New York City with 1,362,605 square feet and a city-determined market value of $259.2 million. (Market value is typically about 50% of actual value.) The portfolio has $1.4 billion in debt, with top three lenders as Bank Leumi, Berkadia Commercial Mortgage, and Goldman Sachs respectively. Within the portfolio, the bulk, or 80 percent of the 1,362,605 square feet of built space are elevator properties, with industrial properties next occupying 12 percent of the space. The bulk, or 71 percent of the built space, is in Brooklyn, with Queens next at 29 percent of the space.

The buyer

The PincusCo database currently indicates that Stockbridge Capital Group owned at least one commercial property in New York City with 164,384 square feet and a city-determined market value of $43.4 million. (Market value is typically about 50% of actual value.) The portfolio has $73.4 million in debt, borrowed from Wells Fargo. The portfolio consists of at least a single elevator property. It is located in Manhattan.

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