Madison Realty Capital Lends $140M on Brooklyn Resi Tower Project

Rabsky Group has secured $140 million of construction takeout financing for a nearly completed multifamily high-rise complex in Fort Greene, Brooklyn, Commercial Observer can first report.

Madison Realty Capital originated the loan on the developer’s planned 463-unit property at 240 Willoughby Street, which is 95 percent complete. Rabsky previously landed a $72 million construction loan from Scale Lending for the 30-story project in early 2022.

“Downtown Brooklyn is a hub for technology and innovation businesses, presenting substantial demand for supporting retail and large-scale residential developments,” Josh Zegen, managing principal and co-founder of Madison Realty Capital, said in a statement. 

Galaxy Capital’s Henry Bodek negotiated the deal. 

Located adjacent to Fort Greene Park, the property includes a mix of 82 studios, 228 one-bedroom apartments and 153 two-bedroom units. The project received a tax abatement under the former 421a program, since 30 percent of the apartments will be designated as affordable housing. 

Community amenities at 240 Willoughby will include a fitness center, a yoga studio, a game room with a sports simulator, a media room and a business lounge. The project is slated for competition in the 2025 second quarter.

Rabsky Group acquired the site, which was previously home to Brooklyn Hospital Center, in 2019 for $95 million in 2019, The Real Deal previously reported.

“We’re delighted to arrange the next round of financing for this spectacular development in Fort Greene, and partner with Rabsky Group and Madison Realty Capital once again,” Bodek told CO. 

Officials at Rabsky Group did not immediately return a request for comment.

Andrew Coen can be reached at acoen@commercialobserver.com.