Dealmaker: Madison Realty Capital Provides $116M in Dallas, New York

Madison Realty Capital, New York, provided two loans totaling $115.5 million in Dallas and Midtown Manhattan.

In Dallas’ Turtle Creek neighborhood, MRC provided a $32.5 million loan to finance JMJ Development’s acquisition of a mixed-use development site. JMJ Development Founder Tim Barton signed the purchase contract on the 2.4-acre site in April 2018 and plans to develop a 25-story, 548,800-square-foot mixed-use tower with a 177-room star hotel and 97 condominium residences.

The site is currently improved with 30,000 square feet of office space and 25,000 square feet of parking.

“This is a rare and sizable development site in one of Dallas’s wealthiest and most attractive neighborhoods for residential and commercial uses,” said MRC Co-Founder and Managing Principal Josh Zegen. “We believe the neighborhood’s strong demographic and economic fundamentals, bolstered by an affluent population and a thriving office, retail and restaurant scene, will allow the sponsor to execute its development plan and capitalize on the growing need for high-end hospitality and housing in the area.”

The property at the west corner of Turtle Creek Boulevard and Dickason Avenue is just north of downtown Dallas. The Dallas North Tollway, the North Central Expressway and Interstate-30 West all pass through the neighborhood, allowing a 12-minute drive to Dallas Love Field Airport.

MRC also provided $83 million to recapitalize a 230-room hotel at 25 West 51st Street in Midtown Manhattan across from Rockefeller Center. Loan proceeds allowed borrower Sam Chang, Founder and Chairman of McSam Hotel Group, to retire existing debt on the property and transition the hotel to another brand.

Zegen noted the transaction closed within three weeks.