SCALE Lending closes $72M construction loan for 240 Willoughby St. in Fort Greene

SCALE Lending closes $72M construction loan for 240 Willoughby St. in Fort Greene
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View of the development of 240 Willoughby Street by the Rabsky Group in Fort Greene, including a new building and the renovation of an existing building. Submit courtesy of Rabsky Group

SCALE Lending, an active lender for construction financing in the New York metro area, announced this week that it has completed a $72 million construction loan for Rabsky Group’s 240 Willoughby St. in Fort Greene.

The project, located a stone’s throw from Fort Greene Park, will include the construction of a new 30-story, 300-unit multi-family building, and the renovation of a 21-story building comprising 189 units.

Under the New York Affordable Program, 147 units will be allocated to affordable housing.

As Eagle’s Lore Croghan reported in 2018, Rabsky purchased the current 21-story building of The Brooklyn Hospital Center, which he used for medical offices as well as apartments for hospital staff, in late 2016 for about $100 million. Crogan said the facility at the time was known as the Maynard Building.

Reports published at the time said the hospital planned to use proceeds from the sale to help fund construction of a new urgent care center and renovations on the main hospital campus.

The 240 Willoughby Street Building, then known as the Maynard Building, as it appeared in 2018. Photo taken from Fort Green Park. Eagle file photo by Laure Crogan

SCALE Lending, a subsidiary of Slate Property Group, is one of the most active lenders in the market, closing more than $1.25 billion in loans over the past 12 months. Funding was arranged by SPR Group.

“We are excited to be working with the Rabsky Group, one of New York City’s leading developers,” said Martin Nussbaum, Co-Founder and Director of Slate Property. “This loan was another example of SCALE’s ability to quickly navigate a complex loan structure, including multiple buildings, a land lease, and more.”

The 240 Willoughby St. Just blocks from Fort Greene Park, Barclay Center, Atlantic Terminal Mall, and several subway lines. It is also located within the Brooklyn Cultural District.

982-998 Fulton Street in Clinton Hill, another multifamily development for which SCALE provided funding. Submitted by SCALE Lending

The SCALE Lending website lists several other examples of Brooklyn developments for which the company has provided funding.

The first is 210 Clarkston Street, a 165-unit development for which SCALE made $68.5 million. Another is 982-998 Fulton Street in Clinton Hill, a 113-unit development for which the company provided $40 million. In addition, SCALE provided $35 million for 843 Pacific Street, an 88-unit project in Prospect Heights.

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