Madison Realty Capital is one of the leading real estate investment management firms based in Manhattan, New York. The firm has provided a $124 million customized first and second mortgage to their client who has acquired a 175,000-square-foot real estate portfolio in Manhattan.
Josh Zegen, co-founder and managing principal of MRC, said that the portfolio consists of 15 residential and mixed-use buildings in coveted locations in the East Village. It's a collection that "would be nearly impossible to replicate in today's market."
"On the lending side of MRC's business, our focus is on funding complex, time-sensitive, middle market transactions like this major portfolio deal," Zegen said. "We are active in special situation real estate lending throughout Manhattan and the outer boroughs, so we're deeply familiar with all the neighborhoods and get up to speed quickly," added the co-founder.
A report by Commercial Property Executive stated that for the financing, MRC made use of a single-source capital solution, participating in select tranches of the capital stack. "The financing was designed not only to facilitate the borrower's off-market acquisition of the portfolio, but to allow for the renovation and repositioning of the assets as well," reported CP Executive.
This is not the first multi-million dollar deal closed by MCR this month. Last Sept. 4, MCR posted a press release in PR Newswire announcing that "Madison Realty Capital Provides $107.25M Financing for Acquisition of 357,000 SF Long Island College Hospital Portfolio in Cobble Hill, Brooklyn."
"MRC specializes in delivering funding for complex, time-sensitive middle market transactions, so in many ways we were a natural fit for the LICH deal," said Zegen. "We've been active as a lender and investor in Brooklyn for many years now, and our vertically-integrated team has the ability to rapidly assess and underwrite existing properties as well as new development projects. Cobble Hill is one of Brooklyn's most desirable neighborhoods, and yet properties rarely trade and very few are developed given zoning and landmark restrictions. These properties are unique in offering as-of-right development potential and have no landmark restrictions, so this deal is particularly exciting for us to play this role in. Our team got up to speed quickly and ultimately closed a great deal," concluded Zegen.