Real Estate

Rabsky Secures $286M Loan for 604-Unit Gowanus Project

Rabsky secures $286M loan for 604-unit Gowanus project amid rezoning surge and extended tax break deadline.

By Tal Alexander

5/24, 17:54 EDT

Key Takeaway

  • Rabsky Group secured a $286 million construction loan from G4 Capital for its 604-unit multifamily project at 313 Bond Street, Gowanus.
  • The project benefits from the 2021 Gowanus rezoning and an extended deadline to qualify for the 421a tax break until 2031.
  • Rabsky continues expanding, recently acquiring Nassau Brewing redevelopment in Brooklyn and planning a large residential development in Fort Lauderdale.

Rabsky Group's Major Gowanus Project

Rabsky Group, a prominent Brooklyn-based developer, has secured a substantial $286 million construction loan from G4 Capital for its ambitious multifamily project at 313 Bond Street in Gowanus. This development, which will feature 604 rental units across a 567,000-square-foot complex, is a significant step forward for the area, which has seen a surge in development following a 2021 rezoning. The project underscores Rabsky's strategic expansion in Brooklyn and beyond, leveraging the rezoning to transform the formerly industrial neighborhood into a vibrant residential hub.

Financing the Future

The $286 million loan, arranged by Henry Bodek of Galaxy Capital, will fund the construction of the rental complex adjacent to the Gowanus Canal. This follows a $92 million pre-development loan provided by G4 Capital in 2022, highlighting the financial commitment and confidence in the project's success. Rabsky's acquisition of the site from Yoel Goldman’s All Year Holdings for $95 million in 2019, and the subsequent bankruptcy and asset sell-off by All Year, illustrate the dynamic and often turbulent nature of real estate development in New York City.

Gowanus Rezoning and Market Dynamics

The 2021 rezoning of Gowanus has been a catalyst for significant development in the area, with projections to deliver 8,500 homes. Rabsky's project is a testament to the rapid pace of development spurred by the rezoning. However, the looming June 2026 deadline to qualify for the 421a tax break had put several projects at risk. The recent extension of this deadline to 2031 by the state provides much-needed relief and stability, ensuring that developers can complete their projects without the pressure of an imminent deadline.

Broader Implications for Real Estate Development

Rabsky Group's Gowanus project is emblematic of broader trends in urban development, particularly in areas undergoing rezoning and revitalization. The substantial loan secured for this project reflects strong investor confidence in the potential of Gowanus as a residential destination. Moreover, Rabsky's expansion into other states, such as their planned 1,100-unit residential development in Fort Lauderdale, indicates a strategic diversification and growth beyond Brooklyn. This move aligns with broader market trends where developers seek opportunities in emerging markets while capitalizing on local rezoning benefits.