Rabsky gets six-month extension on $100M in loans for towering Brooklyn project

Developer plans to build 902 apartments and 702K sf of office space at 625-635 Fulton

Mar.March 07, 2019 08:30 AM

625-635 Fulton Street in Downtown Brooklyn (Credit: Google Maps)

Rabsky Group has gotten an extension on $100 million in past-due loans for a Downtown Brooklyn development site it hopes to build a 942-foot-tall tower.

The developer signed a deal to extend two loans — for 625 and 635 Fulton Street, which it owns with Joel Gluck’s Spencer Equity — until July, Commercial Observer reported. Documents for the deal were filed on the Tel Aviv Stock Exchange.

Total financing for the project is $120 million. It combines an $80 million senior mortgage from Bank Leumi USA on 625 Fulton Street, a $20 million senior mortgage on 635 Fulton Street from BofI Federal Bank (now Axos Bank), and a $20 million mezzanine loan from the State Bank of Texas. All three were due in January this year.

Bank Leumi originated the loan in 2016, which was extended to mid-July with the option to further extend until January 2020. The mezzanine loan, with has an 11 percent interest rate, was also extended until mid-July. The second senior loan hasn’t yet been extended.

Rabsky and Spencer paid $158 million for the 75,000-square-foot site in 2016. It has 600,000 buildable square feet. The lot at 625 Fulton Street is vacant — and 635 Fulton Street contains a three-story building, which as of 2017, had three tenants with leases expiring in 2018 and 2019, the report said.

According to a previous report, Rabsky hopes to build a 942-foot-tall building with 902 apartments, 739,000 square feet of office space and a 640-seat public elementary school at 625 Fulton Street.

Rabsky recently went into contract for a $95 million Gowanus development site owned by Yoel Goldman‘s All Year Management. Rabsky provided a $34 million deposit when it signed the contract in February. It’s slated to close in August.

[CO] — Meenal Vamburkar

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