NEW YORK — Madison Realty Capital (MRC), an institutionally backed real estate investment firm, has provided first and second mortgage financing totaling $124 million for the acquisition and future renovation of a 15-building, 175,000-square-foot portfolio of residential and mixed-use properties in New York’s East Village.
“This portfolio of properties in such prime locations in the East Village would be nearly impossible to replicate in today’s market,” says Josh Zegen, co-founder and managing principal of MRC. “We’re excited to offer a customized loan package to help the borrower enhance the value of the portfolio.”
The portfolio has a mix of studio and one-bedroom units. The buildings are located in a neighborhood that is increasingly popular with young professionals and students due to its retail, restaurants, nightlife and proximity to New York University and the city’s employment centers.
The acquisition was an off-market deal with long-term family owners. The borrower plans to update common areas of the buildings, renovate residential units to maximize square footage and lease up vacancies.
Including this transaction, MRC has closed 24 debt investments totaling $590 million so far in 2015, consisting of special situation loan origination opportunities and loan acquisition deals.
MRC is a New York-based real estate investment firm that pursues real estate equity and debt investments in the middle market.
— Haisten Willis