Dealmaker: Madison Realty Capital Provides $62M

Madison Realty Capital, New York, provided $62 million for New York condominium and hotel properties.

MRC lent $45.5 million for mixed-use condominium development 22 Bond Street in Manhattan’s Noho neighborhood. Josh Zegen, Co-Founder and Managing Principal of MRC, said the project is 95 percent complete.

Zegen said MRC recently invested in another condo project, One Great Jones Alley, two blocks from 22 Bond. “Through that recent development experience, we have become deeply familiar with the immediate neighborhood,” he said. “After previously acquiring the existing note on 22 Bond, we were able to arrange new financing to help the borrower complete construction and sell out of the project.”

22 Bond Street is an 11-story, 34,000-square-foot mixed-use building with a 4,245-square-foot commercial condominium on the cellar and grade levels and six residential condominiums beginning on the second floor.
Originally known as the Warehouse District where many former dry-good warehouses and lighting showrooms were located, NoHo on the city’s east side now houses many media offices, high-end retail strips and loft apartments.

In Long Island City, MRC provided a $16.5 million acquisition and construction financing package collateralized by a partially constructed hotel development. The McSam Hotel Group affiliate borrower acquired 38-04 11th Street and plans to finish a 55,600-square-foot 148-key hotel on the site.

The previous owner secured approvals, cleared previous structures from the site and built the foundation. McSam said it plans to complete construction within 18 months.

MRC funded a $4 million loan at closing for site acquisition and committed to an additional $12.5 million to complete the project. The MRC financing package represents 70 percent of total project cost.

Zegen called Long Island City a proven hotel market. “The neighborhood as a whole continues to boom with real estate investment and development activity in all major property types,” he said.