The Rabsky Group has secured a $450 million construction loan to complete development of a 35-story, 1,098-unit multifamily mixed-use property at 625-635 Fulton St. in downtown Brooklyn. Madison Realty Capital originated the financing on behalf of the developer.
Henry Bodek of Galaxy Capital served as the broker for the transaction. Further details on the financing were not released. The property is being developed by The Rabsky Group, one of the largest residential and commercial developers in Brooklyn and Queens led by co-founders Simon Dushinsky and Yadler Rabinowitz. Joel Gluck’s Spencer Equity has contributed significant cash equity for the construction. The amount of the equity investment was not disclosed.
Situated at the intersection of Flatbush Avenue, the property will have two interconnected residential towers atop a five-story podium. The asset will have 590,096 square feet of residential space and 25,988 square feet of retail space along Fulton Street, 250 parking spaces and 150 storage units.
An earlier version of the plan featured a significantly taller structure that included 739,000 square office space and 902 residential units. The new plan will feature 342 studios, 492 one-bedroom and 264 two-bedroom units. Thirty percent will be affordable through the Affordable New York program. A portion of the affordable units will be part of the inclusionary Housing Program for lower-income residents.
Amenities will include a fitness center, spa, recreation areas, lounges, rooftop outdoor pool with views of Manhattan and Brooklyn and in-unit washers and dryers.
Josh Zegen, managing principal & co-founder of Madison Realty Capital, said in prepared remarks downtown Brooklyn has become one of New York’s fastest growing residential markets and he expects high-quality multifamily options like the Fulton Street project to be quickly absorbed.
He also noted the market has become a technology and innovation hub and is home to 25 percent of New York City-based tech firms. The property is located within the Brooklyn Tech Triangle, an area comprised of downtown Brooklyn, DUMBO and the Brooklyn Navy Yard.
Earlier Loan Deals
In February, Madison Realty Capital provided a $106 million construction loan to Arch Cos. and AB Capstone to develop Myrtle Point, a 17-story mixed-use tower at 3-50 St. Nicholas Ave. along the border of Brooklyn and Queens. The 284,000-square-foot building will have 133 residential units, including 30 percent affordable units, and 130,000 square feet of retail space across a four-story base.
A month earlier, the firm provided a $53 million construction loan to Heritage Equity Partners to begin development of a 150-unit multifamily property at 875 Fourth Ave. in Brooklyn’s South Park Slope neighborhood.