The Real Deal New York

Rabsky and Spencer land $65M loan for Broadway Triangle project

Funds from unnamed lender will repay previous debts on the property
By Chava Gourarie | November 29, 2018 02:30PM

A rendering of Broadway Triangle (Credit: Magnusson Architecture and Planning via Department of City Planning)

Simon Dushinsky and Isaac Rabinowitz’s Rabsky Group is forging ahead with an eight-building development in South Williamsburg’s Broadway Triangle, after a judge dismissed a discrimination lawsuit against the controversial project earlier this year.

Dushinsky, together with co-developer Joel Gluck of Spencer Equity, landed a $65 million loan from an unnamed financial institution for the project, according to documents filed with the Tel Aviv Stock Exchange.

The one-year loan will repay an existing $20 million loan on the property, originated by Signature Bank in 2015. Another $10 million will will be used to repay Gluck a portion of the money he fronted Dushinsky, leaving roughly $30 million in the pot after costs, according to the document. Gluck has provided Dushinsky with two loans, a $15 million loan that comes due in January, and a $20 million loan that comes due in April.

Under the terms of the new loan, which carries an interest rate of 4.5 percent over Libor, Dushinsky and Gluck have the option of increasing the debt to $80 million, and the lender has right of first refusal on the financing of a second stage of the two-block development.

Rabsky and Spencer are equal partners in Harrison Realty LLC, the owning entity of the project, which consists of 1,146 housing units — 287 of which will be affordable — and 65,000 square feet of retail.

Rabsky’s plan for the area has ignited several rounds of community disssent. After the city approved a rezoning that allowed the project to go through, several community groups sued claiming that the influx of market-rate apartments would discriminate against people of color. The suit was dismissed in July.

Rabsky and Spencer did not reply to requests for comment.