Rabsky Extends $100M in Loans on Fulton Development Site
Rabsky Group got a six-month extension for $100 million in loans on a Downtown Brooklyn development site that was past due, Commercial Observer has learned.
Rabsky, which owns the adjacent lots at 625 and 635 Fulton Street together with Joel Gluck’s Spencer Equity, signed a deal to extend two loans totaling $100 million loans until July, according to documents filed on the Tel Aviv Stock Exchange.
Rabsky, headed by Simon Dushinsky and Israel Rabinowitz, and Spencer paid $158 million for the 75,000-square-foot site in 2016, which offers 600,000 buildable square feet, as CO reported.
The financing for the project totals $120 million: 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 (recently rebranded as Axos Bank), and a $20 million mezzanine loan from the State Bank of Texas. All three loans were due in January 2019, according to Spencer’s financial documents.
The Bank Leumi loan, which was originated in 2016, was extended until mid July with the option to extend until January 2020. The mezzanine loan, which carries an 11 percent interest rate, was also extended until mid July, though it was not immediately clear if the extension was with the State Bank of Texas, or if another institution now holds the note.
The second senior loan has not yet been extended.
The lot at 625 Fulton Street is vacant, while 635 Fulton Street contains a three-story building, which as of 2017, had three tenants with leases expiring in 2018 and 2019, according to property records.
Rabsky Group did not reply to a request for comment. Bank Leumi, State Bank of Texas and Spencer Equity could not be reached for comment.