Rabsky Group Secures $286M Construction Loan for Gowanus Rental Project
Rabsky Group Secures $286 Million Construction Loan for Brooklyn Project
Rabsky Group has successfully obtained a substantial $286 million construction loan from G4 Capital for its 604-unit rental project at 313 Bond Street in Brooklyn's Gowanus neighborhood. The project, led by Simon Dushinsky, is set to establish a 567,000-square-foot complex near the Gowanus Canal, taking advantage of the 2021 rezoning in the area. The financing was arranged by Henry Bodek of Galaxy Capital, with G4 Capital having previously supplied a $92 million pre-development loan in 2022. Rabsky acquired the site from All Year Holdings in 2019 for $95 million, following All Year's $61 million purchase a year earlier. Notably, Rabsky is actively expanding its presence in Brooklyn with the recent acquisition of the Nassau Brewing redevelopment and endeavors to develop a 1,100-unit project in Fort Lauderdale. The extended 2031 deadline for the 421a tax break may play a pivotal role in ensuring the timely completion of the Gowanus project.
Key Takeaways
- Rabsky Group secures $286 million construction loan from G4 Capital for its 604-unit project at 313 Bond Street in Brooklyn's Gowanus neighborhood.
- Loan will be used to build a 567,000-square-foot rental complex near the Gowanus Canal, with financing arranged by Henry Bodek of Galaxy Capital.
- Rabsky, led by Simon Dushinsky, has been active in the Gowanus area, capitalizing on the 2021 rezoning to build apartments.
- Rabsky previously received a $92 million pre-development loan from G4 Capital in 2022 and bought the site from All Year Holdings for $95 million in 2019.
- Gowanus rezoning is delivering housing ahead of schedule, with Rabsky expanding to Fort Lauderdale and other states.
Analysis
The $286 million construction loan from G4 Capital to Rabsky Group represents the continuous growth and investment in Brooklyn's Gowanus neighborhood, following the 2021 rezoning. This injection of financing will not only stimulate the local economy, creating job opportunities and revenue but also address housing needs. Nevertheless, it may exacerbate gentrification concerns and elevate property values, impacting low-income residents.
The expansion of Rabsky Group to Fort Lauderdale and other states may instigate similar investments, igniting growth in those regions. The extension of the 421a tax break offers developers like Rabsky financial incentives, potentially expediting housing development in Gowanus. However, it also raises concerns about the long-term affordability of these new residential units.
The involvement of Galaxy Capital in orchestrating the financing underscores the increasing significance of financial intermediaries in large-scale real estate endeavors. Overall, this development signifies a positive trend for the technology and business sectors, fostering growth and investment in diverse markets.
Did You Know?
- 421a Tax Break: It is a New York City initiative offering property tax exemptions for new residential developments with the aim of encouraging the construction of affordable housing. The "extended 2031 deadline" mentioned in the article refers to an extension of the program to facilitate timely project completion.
- Gowanus Rezoning: This initiative in Brooklyn's Gowanus neighborhood permits higher density residential and commercial development, facilitating opportunities for developers such as Rabsky Group to construct more housing units, as seen in their 604-unit project at 313 Bond Street.
- Galaxy Capital: A New York-based real estate investment and finance firm that specializes in arranging commercial real estate debt and equity investments. In this context, Henry Bodek of Galaxy Capital facilitated financing for Rabsky Group's Gowanus project.