Rabsky Group signs $140M refi loan with Deutsche Bank for new construction rentals in Williamsburg

Rabsky Group through the entity Harrison Realty II LLC as borrower signed a refi loan with lender Deutsche Bank valued at $140 million for several rental properties including34 Union Avenue,  58 Union Avenue and 269 Wallabout Street in Williamsburg, Brooklyn.
The deal closed on June 5, 2023 and was recorded on June 26, 2023. The prior lender was Valley National Bank which held debt that had an original loan amount of $140 million.
The signatory for Rabsky Group was Shimon Dushinsky. The signatory for Deutsche Bank was Timothy Donahoe and John Skorupski.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 34 Union Avenue.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Simon Dushinsky, head officer and Yossi Orgal, officer. The business entity is Harrison Realty Ii Llc.

The property

The residential elevator building in Williamsburg has 113,935 square feet of built space and 2,287 square feet of additional air rights for a total buildable of 116,306 square feet according to a PincusCo analysis of city data. The parcel has frontage of 183 feet and is 138 feet deep with a total lot size of 8,501 square feet. The lot is irregular. The zoning is R8A which allows for up to 6.02 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $496,000. The most recent loan totaled $120 million and was provided by Bank Leumi on March 2, 2021.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received one DOB violation in the last year.

Development

On these lots, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 845,819 square feet. The largest is a new building project for a 77-unit, 423,295 square-foot R-2 building submitted by Rabsky Group and filed by Simon Dushinsky with plans filed February 10, 2020 and permitted April 30, 2021. The second largest is a new building project for a 65-unit, 422,524 square-foot R-2 building submitted by Rabsky Group and filed by Simon Dushinsky with plans filed October 29, 2019 and permitted February 17, 2021.

The block

On the tax block of 34 Union Avenue, PincusCo has identified the owners of four of the four commercial properties representing 422,954 square feet of the 422,954 square feet. The identified owner is Rabsky Group.
On the tax block, there were four new building construction projects totaling 1,690,867 square feet. The largest is a 77-unit, 423,295 square-foot residential (R-2) building submitted by Rabsky Group and filed by Simon Dushinsky with plans filed February 10, 2020 and permitted April 30, 2021. The second largest is a 65-unit, 422,524 square-foot residential (R-2) building submitted by Rabsky Group and filed by Simon Dushinsky with plans filed October 29, 2019 and permitted February 17, 2021.

All properties are elevator.

The borrower

The PincusCo database currently indicates that Rabsky Group owned at least 30 commercial properties with 2,616 residential units in New York City with 2,249,930 square feet and a city-determined market value of $355.1 million. (Market value is typically about 50% of actual value.) The portfolio has $1.7 billion in debt, with top three lenders as Bank Leumi, Apollo Global Management, and Madison Realty Capital respectively. Within the portfolio, the bulk, or 90 percent of the 2,249,930 square feet of built space are elevator properties, with industrial properties next occupying 7 percent of the space. The bulk, or 82 percent of the built space, is in Brooklyn, with Queens next at 18 percent of the space.

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