NEW YORK, — Madison Realty Capital (MRC) has provided a $50 million first mortgage loan collateralized by a development project across 58 and 66 Gerry Street and coupled with an existing office building and additional development site at 25 and 33 Bartlett Street in the Broadway Triangle neighborhood of Brooklyn.
The development, situated on a 30,037-square-foot lot, includes a nearly eighty percent complete condominium project comprised of two adjacent seven-story buildings and ground-floor retail, a completed 7,470-square-foot office building, and a vacant residential development site.
The sponsor is an experienced local developer and repeat MRC borrower who first acquired the property in December 2016. The time-of-the essence financing will be used to retire the existing debt on the development, complete construction of the condominium project, and cover all costs associated with the transaction.
“MRC’s lending expertise and familiarity with the specific needs of this repeat borrower allowed us to design a customized funding package within a compact timeframe,” said Josh Zegen, Co-Founder and Managing Principal of MRC. “In this case, MRC was able to capitalize on the opportunity to originate a loan for a well-located, high-quality condo development with additional liquid assets including a boutique office building and buildable lot, as well as a healthy last dollar exposure. The development’s structurally complete buildings and limited cost/schedule overrun risk made this an even more attractive project for us to finance.”
Upon completion, the condo development located at 58 Gerry Street and 25 Bartlett Street will include 41 residential units totaling 80,117 square feet, 12,625 SF of retail space across the ground and cellar levels, and 21 parking spaces. The property also features a 10,000-square-foot vacant lot directly north of the completed office building at 66 Gerry Street, offering the potential for an additional affordable housing project.
Progress to date on the condo development includes completion of the foundation, superstructure, and exterior framing. The construction is expected to be completed by Q4 2019.
About Madison Realty Capital (MRC)
Madison Realty Capital (MRC) is a New York City-based real estate private equity firm focused on real estate debt and equity investment strategies. Founded in 2004, MRC has invested in approximately $10 billion of transactions in the multifamily, retail, office, industrial and hotel sectors. The firm manages investments in the United States on behalf of a global investor base consisting of corporate and public pension funds, sovereign wealth funds, university endowments, foundations, fund of funds, family offices, and high net worth individuals. MRC is a fully integrated firm with over 70 employees across all real estate investment, development, and property management disciplines. Debt strategies include construction and acquisition lending, special situation financing and debt acquisitions; equity real estate strategies include opportunistic and value-add investments as well as ground-up development. Among other industry recognitions, MRC has been named to the Commercial Observer’s prestigious “Power 100” list of New York City real estate players and is consistently cited as one of the industry’s top construction lenders.
Great Ink Communications: (212) 741-2977
Tom Nolan or Al Barbarino: firstname.lastname@example.org