Rabsky Group signs $105M refi loan with Bethpage for 195-unit rental in Long Island City

Rabsky Group through the entity Crescent & 27 LLC as borrower signed a refi loan with lender Bethpage Federal Credit Union valued at $105 million for the 195-unit residential elevator building (D6) at 42-22 27th Street in Long Island City, Queens.
The deal closed on September 1, 2022 and was recorded on September 13, 2022. The prior lender was Arbor Realty Trust which held debt that had an original loan amount of $98 million. The property has 141,077 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $744 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 owner bought the property on June 2, 2015, for $39 million. The signatory for Rabsky Group was Shimon Dushinsky. The signatory for Bethpage Federal Credit Union was Robert Fish. This refinancing adds $7 million to a refi provided in January 2021 for $98 million.

Prior sales and revenue

The 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 and Crescent & 27 Llc. The 141,077-square-foot property generated revenue of $6.2 million or $44 per square foot, according to the most recent income and expense figures.

The property

The 42-22 27th Street parcel has frontage of 185 feet and is 165 feet deep with a total lot size of 24,150 square feet. The lot is irregular. The zoning is M1-5/R7-3 which allows for up to 5 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $28 million.The most recent loan totaled $98 million and was provided by Arbor Realty Trust on January 29, 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 $3,125 in ECB penalties and $3,125 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on December 31, 2019. 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 three of the four commercial properties representing 395,533 square feet of the 398,610 square feet. The largest owner is Rabsky Group, followed by Lions Group and then World Wide Group.

The majority, or 99 percent of the 398,610 square feet of built space are elevator buildings, with retail buildings next occupying 1 percent of the space.

The borrower

The PincusCo database currently indicates that Rabsky Group owned at least 29 commercial properties in New York City with 1,380,404 square feet and a city-determined market value of $260.9 million. (Market value is typically about 50% of actual value.) The portfolio has $1.2 billion in debt, with top three lenders as Bank Leumi, Berkadia Commercial Mortgage, and Goldman Sachs respectively. Within the portfolio, the bulk, or 79 percent of the 1,380,404 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.

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