SCALE Lending closes $72M construction loan for 240 Willoughby St. in Fort Greene
Former hospital building is part of development
SCALE Lending, an active construction-financing lender in the New York metro area, announced this week that it has completed a $72 million construction loan for the Rabsky Group’s 240 Willoughby St. project in Fort Greene.
The project, a stone’s throw from Fort Greene Park, will include both the construction of a new 30-story, 300-unit multifamily building and renovation of an existing 21-story building with 189 units.
Under the Affordable New York program, 147 units will be set aside for affordable housing.
As the Eagle’s Lore Croghan reported in 2018, Rabsky purchased the existing 21-story building from The Brooklyn Hospital Center, which used it for medical offices as well as apartments for hospital employees, in late 2016 for approximately $100 million. At that time, the facility was known as the Maynard Building, Croghan said.
Published reports at the time said that the hospital had planned to use the sale proceeds to help fund the construction of a new urgent care center and renovations at its main hospital campus.
SCALE Lending, a Slate Property Group affiliate, has been one of the most active lenders in the market, with more than $1.25 billion in loans closed over the last 12 months. Financing was arranged by SPR Group.
“We’re excited to work with Rabsky Group, one of the most prominent developers in New York City,” said Martin Nussbaum, co-founder and principal of Slate Property. “This loan was another example of SCALE’s ability to quickly navigate a complex loan structure, including multiple buildings, a ground lease and more.”
The 240 Willoughby St. development is only blocks away from Fort Greene Park, the Barclay’s Center, Atlantic Terminal Mall and numerous subway lines. It is also within the Brooklyn Cultural District.
SCALE Lending’s website lists several other examples of Brooklyn developments for which the company has provided financing.
One is 210 Clarkston St., a 165-unit development for which SCALE provided $68.5 million. Another is 982-998 Fulton St. in Clinton Hill, a 113-unit development for which the company provided $40 million. In addition, SCALE provided $35 million for 843 Pacific St., an 88-unit project in Prospect Heights.
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