Rabsky, Spencer Equity pay $37.8M to Extell for ground lease dev site in Downtown Brooklyn, part of larger deal

Rabsky Group and Spencer Equity Group as 50-50 partners through the entity 356 Fulton Holdings LLC paid $37.8 million to Extell Development through the entity Fulton Rh LLC for the ground lease controlling the development site at 356 Fulton Street in Downtown Brooklyn, Brooklyn. The expected use is ground up development with 200 for-sale residential condominium units, 299 rental units and 25,000 square feet of retail space in the 574,000 gross square foot complex. Of those 299 rental units, 209 will be market rate and 90 will be affordable.

On these lots, there is one active new building construction project, B00600120, for a 363-unit, 443,418 square-foot R-2 building. The project was submitted by Feil Organization and filed by Jeff Mongno with plans filed November 17, 2021 and permitted April 21, 2022.

The total price provided in a document Spencer Equity Group filed with the Tel Aviv Stock Exchange in late October set the amount for the development site at $56 million. A post on Traded NY set the price at $46 million. It was not immediately clear what the different figures represented. The TASE document said the buyers intended to spend an additional $6 million, on top of the $56 million, to buy additional air rights.

The deal closed on October 27, 2025 and was recorded on November 5, 2025. The seven properties have 66,208 square feet of built space and 319,873 square feet of additional air rights for a total buildable of 371,350 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $571 and the price per buildable square foot is $101 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 Extell Development was Gary Barnett . The signatory for Rabsky Group and Spencer Equity Group was Simon Dushinsky . This is the purchase of a 99-year ground lease Feil Organization as landlord signed with Extell in 2022. Traded reported previously on the sale but did not mention Spencer Equity Group.

A translation of the TASE document from the Hebrew: The purchasers intend to act to develop and construct on the aforementioned assets a residential real estate project that will include approximately 200 residential units (condos ) for sale, approximately 299 residential units for rent and commercial areas…. The estimated cost of establishing the project, as of the date of the report, is approximately $400 million (including the cost of real estate assets).”

From the loan doc: “Future Improvements” means the proposed Improvements to be constructed at the Premises consisting of an approximately 574,000 gross square foot “70/30” mixed use building containing 200 for sale condominium units of approximately 195,000 net square feet of space, 209 market rate residential rental units of approximately 136,500 net square feet of space, 90 affordable residential rental units of approximately 58,500 net square feet of space, ground floor retail space of approximately 25,000 square feet of space, second floor retail space of approximately 35,000 square feet of space, and cellar space of approximately 15,000 square feet of space.”

To finance the purchase, the developers borrowed $31.5 million from Valley National Bank.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Rabsky Group purchased five properties in five transactions for a total of $170 million and sold 10 properties in 10 transactions for a total of $338.6 million over the past 24 months.
The seller Extell Development purchased 17 properties in six transactions for a total of $534.1 million and sold five properties in five transactions for a total of $199.2 million over the same time period.

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 four DOB violations, $3,400 in ECB penalties, and $22,600 in OATH penalties in the last year.

Development

The neighborhood

In Downtown Brooklyn, The bulk, or 40 percent of the 22.4 million square feet of commercial built space are office buildings, with elevator buildings next occupying 24 percent of the space. In sales, Downtown Brooklyn has 1.5 times the average sales volume among other neighborhoods with $449.4 million in sales volume in the last two years and is the 15th highest in Brooklyn. For development, Downtown Brooklyn has had very little major development activity relative to other neighborhoods.It had 1.2 million 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 the tax block of 380 Fulton Street, PincusCo has identified the owners of 10 of the 13 commercial properties representing 414,677 square feet of the 420,032 square feet. The largest owner is Clipper Equity, followed by Feil Organization and then Nyc Department Of Education.
On the tax block, there was one new building construction project filed totaling 443,418 square feet. It is a 363-unit, 443,418 square-foot residential (R-2) building submitted by Feil Organization and filed by Jeff Mongno with plans filed November 17, 2021 and permitted April 21, 2022.

The majority, or 70 percent of the 420,032 square feet of built space are office buildings, with mixed-use buildings next occupying 25 percent of the space.

The seller

The PincusCo database currently indicates that Extell Development owned at least 70 commercial properties with 691 residential units in New York City with 2,898,977 square feet and a city-determined market value of $835.3 million. (Market value is typically about 50% of actual value.) The portfolio has $7.3 billion in debt, with top three lenders as Guggenheim Partners, Blackstone Group, and JVP Management respectively. Within the portfolio, the bulk, or 37 percent of the 2,898,977 square feet of built space are specialty properties, with elevator properties next occupying 20 percent of the space. The bulk, or 96 percent of the built space, is in Manhattan, with Brooklyn next at 4 percent of the space.

The buyer

The PincusCo database currently indicates that Rabsky Group owned at least 39 commercial properties with 4,605 residential units in New York City with 2,131,219 square feet and a city-determined market value of $317.2 million. (Market value is typically about 50% of actual value.) The portfolio has $2.9 billion in debt, with top three lenders as Madison Realty Capital, Bank Leumi, and Apollo Global Management respectively. Within the portfolio, the bulk, or 85 percent of the 2,131,219 square feet of built space are elevator properties, with industrial properties next occupying 7 percent of the space. The bulk, or 78 percent of the built space, is in Brooklyn, with Queens next at 19 percent of the space.
The PincusCo database currently indicates that Spencer Equity Group owned at least 15 commercial properties with 898 residential units in New York City with 678,453 square feet and a city-determined market value of $91.4 million. (Market value is typically about 50% of actual value.) The portfolio has $197.6 million in debt, with top three lenders as Signature Bank, Sterling National Bank, and Santander Bank respectively. Within the portfolio, the bulk, or 76 percent of the 678,453 square feet of built space are elevator properties, with walkup properties next occupying 24 percent of the space. The bulk, or 67 percent of the built space, is in Brooklyn, with Bronx next at 22 percent of the space.

Direct link to Acris document. link