The Real Deal New York

Joel Gluck offers bonds in Tel Aviv to refinance DoBro rental tower

The 28-story mixed-use tower is valued at $167M
By Chava Gourarie | May 09, 2018 02:30PM

436 Albee Square

Joel Gluck’s Spencer Equity is seeking to raise $118 million in bonds in Tel Aviv to refinance a newly completed rental tower in Downtown Brooklyn, according to documents filed with the Tel Aviv Stock Exchange. The bonds will be secured by a first position on the 28-story property, the documents show.

Gluck owns the ODA-designed building at 436 Albee Square, dubbed the Azure, together with Yoel Goldman’s All Year Management, in a 50-50 split. The company began marketing the building’s 150 rental apartments in 2017, and received a Temporary Certificate of Occupancy in April.

Spencer Equity plans to offer up to $118 million in secure bonds, which equals 70 percent of the property’s appraised value as of March, at $167 million. The proceeds will be used to refinance the current $105 million in debt on the property, which is due in July, according to the documents.

All Year Management has financed several Brooklyn development projects using the same model, including the William Vale hotel in Williamsburg, and more recently, the Rheingold Brewery site in Bushwick.

Gluck and Goldman bought 436 Albee Square for $14.6 million in 2014 and filed plans for a 143,200-square-foot building, with parking, apartments, and three floors of retail. Gluck has signed several retail tenants, including a five-year deal for $6.1 million, according to the company’s latest financial statement.

Gluck’s Spencer Equity is also behind the development project at the former Pfizer site, together with Simon Dushinsky’s Rabsky Group. Activists have sued to overrule a rezoning in order to prevent the project to move forward.