Rabsky Group signs $228M senior construction loan for development in Gowanus

UPDATED 12:10 p.m., June 5, 2024: Rabsky Group through the entity President Union LLC as borrower signed a new construction loan with lender G4 Capital Partners through the entity G4 18231, LLC valued at $228 million for projects at 395 Carroll Street and 313 Bond Street, also known as 325 Bond Street. The total debt is $286 million, the Real Deal reported last month.

On these lots, there are two active new building construction projects, totaling 462,577 square feet. The larger is a new building project at 395 Carroll Street, job number B00645244, for a 425-unit, 313,348 square-foot residential (R-2) building submitted by Rabsky Group and filed by Rafael Rabinowitz with plans filed December 9, 2021 and permitted December 29, 2023. The other building was filed in February 2022 under job number B00650865, and has an address of 325 Bond Street. It has 179-units and 149,229 square feet. It has also been permitted.

The deal closed on May 23, 2024 and was recorded on June 3, 2024. The prior lender was G4 Capital Partners which held debt that had an original loan amount of $77 million.

The signatory for Rabsky Group was Simon Dushinsky. The signatory for G4 Capital Partners was Robyn Sorid.

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 six DOB violations, $27,500 in ECB penalties, and $27,500 in OATH penalties in the last year.

The neighborhood

In Gowanus, The bulk, or 46 percent of the 9.2 million square feet of commercial built space are industrial buildings, with elevator buildings next occupying 19 percent of the space. In sales, Gowanus has 2.5 times the average sales volume among other neighborhoods with $666.5 million in sales volume in the last two years and is the 6th highest in Brooklyn. For development, Gowanus has 2.4 times the average amount of major developments relative to other neighborhoods and is the 4th highest in Brooklyn. It had 2.7 million square feet of commercial and multi-family construction under development in the last two years, which represents 29 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other development buildings in the past 12 months.

The block

On the tax block of 395 Carroll St, PincusCo has identified the owners of four of the five commercial properties representing 32,532 square feet of the 35,532 square feet. The two identified owners are Rabsky Group and Eduard Slinin.

The borrower

The PincusCo database currently indicates that Rabsky Group owned at least 30 commercial properties with 2,750 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 $1.9 billion in debt, with top three lenders as Bank Leumi, Madison Realty Capital, and Apollo Global Management 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.

Correction: In a prior version of this post, PincusCo reported on four new building job applications filed on these tax lots, through DOB job numbers B00645244, B00646753, B00650865 and B00651087. However, this loan is only for two of those, B00645244 and B00650865 and the 604 residential units. Furthermore, in the prior version of the post, PincusCo used the original unit counts in the filings, but in fact the two projects are now much larger than the initial plans filed.

Direct link to Acris document. link