Montgomery Street Partners buys ground-leased fee for $75M under Rabsky’s Fort Greene development

Montgomery Street Partners through the entity 240 Willoughby Ground Lessor LLC paid $75 million to the Rabsky Group through the entity 240 Willoughby III LLC for the ground-leased fee under the residential building and development site at 240 Willoughby Street in Fort Greene, Brooklyn.

This transaction represents the creation of a 99-year ground lease and a sale of the fee position. The Rabsky Group sold the fee to Montgomery Street Partners, and simultaneously Montgomery Street as the new landlord signed a 99-year lease with Rabsky as tenant. At the same time, Rabsky obtained a $72 million construction loan from Slate Property Groups’s SCALE Lending.

The contract date was October 25, 2021. Murray McCabe is managing partner with Dallas-based Montgomery Street Partners. 

Rabsky Group bought the rental tower in 2018 for $95 million and has an agreement with the neighboring Brooklyn Hospital Center to acquire development rights that would allow it 331,500 square feet of development. The existing $60 million debt obligation, for a $60 million loan provided to Rabsky by Axos Bank in 2019, was transferrer to Montgomery Street Partners.

The deal closed on December 21, 2021 and was recorded on December 29, 2021.
The property has 161,845 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $463 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 Shimon Dushinsky. The signatory for Montgomery Street Partners was Murray McCabe.

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