NEW YORK CITY — Madison Realty Capital (MRC) has provided $19 million in debtor-in-possession (DIP) funding for a residential conversion project in Midtown South. The DIP funding prevented a forced sale through the Chapter 11 Bankruptcy process and will enable the borrower to retain control of the property. Located at 11 East 36th St. and built in 1912, the 14-story, 68,727-square-foot property was originally an office building. The borrower is redeveloping the asset as a 66-unit residential condominium building with two ground-floor retail condominium units and 5,320 square feet of second-floor office space. MRC completed the DIP funding within a short timeframe to avoid the property being sold at bankruptcy auction. Proceeds of the first mortgage loan from MRC will be used to retire previous debt, simplifying the capital stack and permitting the borrower to proceed with the sellout of residential condominium units through the bankruptcy process.
MADISON REALTY CAPITAL PROVIDES $19M DIP FUNDING FOR MIDTOWN SOUTH PROJECT
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