Rabsky Group pays $57.6M to HAP Investments for dev site in Chinatown

Rabsky Group through the entity Sky 65 Franklin LLC paid $57.6 million to HAP Investments through the entity 65 Franklin LLC for the development site (V1) at 360 Broadway in Chinatown, Manhattan. The expected use is ground up development.
The deal closed on January 27, 2025 and was recorded on February 12, 2025.
The seller bought the property on February 16, 2018, for $46 million. The signatory for HAP Investments was Eran Polack . The signatory for Rabsky Group was Shimon Dushinsky . The contract date was December 24, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Rabsky Group purchased one property in one transaction for a total of $18.8 million and sold one property in one transaction for a total of $7.6 million over the past 24 months.
The seller HAP Investments had not purchased any other properties and sold three properties in two transactions for a total of $30.6 million over the same time period.

The property

The parcel has frontage of 56 feet and is 115 feet deep with a total lot size of 6,443 square feet. The lot is irregular. The zoning is C6-4A which allows for up to 10 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $12.9 million. The most recent loan totaled $45.5 million and was provided by G4 Capital Partners on October 8, 2021.

Violations and lawsuits

The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $15 million money judgment concerning construction filed on August 14, 2023, by Bonjour Capital and Charles Dayan against HAP Investments. In addition, according to city public data, the property has received one DOB violation, $34,780 in ECB penalties, and $48,860 in OATH penalties in the last year.

Development

On the lot, there is one active new building construction project, 121188678, for a 41-unit, 77,267 square-foot residential (R-2) building. The project was submitted by HAP Investments and filed by Monzer Khafagy with plans filed July 25, 2018 and it has not been permitted yet. On the tax lot, the most recent condominium plan was filed by 65 FRANKLIN LLC to create 40 residential units and 1 commercial units in a building at 65 Franklin Street in Chinatown, New York, called 65 Franklin Street Condominium, according to an February 10, 2022 submission to the New York State Attorney General. The principal of the sponsor, 65 FRANKLIN LLC, was Eran Polack.

The neighborhood

In Chinatown, The bulk, or 36 percent of the 8.4 million square feet of commercial built space are walkup buildings, with mixed-use buildings next occupying 17 percent of the space. In sales, Chinatown has had very little sales volume relative to other neighborhoods with $103.3 million in sales volume in the last two years. For development, Chinatown has had very little major development activity relative to other neighborhoods.It had 380,664 square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of three of the three commercial properties representing 449,155 square feet of the 449,155 square feet. The largest owner is City Of New York, followed by Hap Investments and then Bonjour Capital.
On the tax block, there was one new building construction project filed totaling 77,267 square feet. It is a 41-unit, 77,267 square-foot residential (R-2) building submitted by HAP Investments and filed by Monzer Khafagy with plans filed July 25, 2018 and it has not been permitted yet.

The majority, or 89 percent of the 449,155 square feet of built space are specialty buildings, with walkup buildings next occupying 11 percent of the space.

The seller

The PincusCo database currently indicates that Hap Investments owned at least three commercial properties with 50 residential units in New York City with 41,002 square feet and a city-determined market value of $22.5 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 100 percent of the 41,002 square feet of built space are elevator properties, with development properties next occupying 0 percent of the space. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that Rabsky Group owned at least 30 commercial properties with 2,946 residential units in New York City with 1,966,119 square feet and a city-determined market value of $274.7 million. (Market value is typically about 50% of actual value.) The portfolio has $2.1 billion in debt, with top three lenders as Bank Leumi, Apollo Global Management, and Madison Realty Capital respectively. Within the portfolio, the bulk, or 88 percent of the 1,966,119 square feet of built space are elevator properties, with industrial properties next occupying 8 percent of the space. The bulk, or 80 percent of the built space, is in Brooklyn, with Queens next at 20 percent of the space.

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