Firm Provides $21 Million First Mortgage Loan and $10 Million in Conditional Financing to Fund Acquisition and Construction Costs
NEW YORK, Sept. 25, 2013 /PRNewswire/ — Madison Realty Capital (MRC), an institutionally backed commercial real estate investment firm and asset manager specializing in flexible debt and equity financing solutions for middle-market transactions throughout the United States, announced the closing of a $21 million first mortgage loan to fund the acquisition of an eight-story office building, located at 29 Ryerson Street in the Wallabout/Clinton Hill section of Brooklyn, New York. In addition to the acquisition financing, MRC has also issued a conditional commitment for construction financing in the amount of $10 million to the borrower, bringing the total of the transaction to $31 million.
MRC was able to secure the financing opportunity based on its prior relationship with the borrower and the firm's ability to execute in a timely fashion. Joshua Zegen, Co-Founder and Managing Member of MRC, made the announcement.
The approximately 214,710 square-foot property, which was built in 1951, is currently being utilized as a storage warehouse. The borrower intends to renovate the building into Class A office space and pursue a leasing strategy focusing on tenants seeking attractive office space at more affordable rates than neighboring locations such as DUMBO.
"This latest financing is consistent with our focus of providing lending solutions that meet the needs of experienced borrowers pursuing quality development opportunities," said Mr. Zegen. "The location and long-term strategy for this property has it well-positioned for success and the speedy completion of this deal will allow the borrower to move forward without further delay. We are pleased to be the lender of record on this transaction."
The eight-story loft building is located in the Wallabout neighborhood in Brooklyn, a subsection of Clinton Hill known for a large mix of commercial properties ranging from single family homes to large industrial properties. The property is in close proximity to the Brooklyn Navy Yard which has seen a large amount of redevelopment in recent years, attracting national movie studios as well as other tenants.
In addition to the office space, the property contains approximately 70 feet of frontage on Flushing Avenue. The space will be able to capitalize on the growing retail demand on Flushing Avenue due to the high foot traffic driven by the nearby office and residential buildings.
About Madison Realty Capital (MRC)
Founded in 2004, Madison Realty Capital is an institutionally backed commercial real estate firm specializing in flexible debt and equity financing solutions for middle-market transactions throughout the United States. MRC invests in the multifamily, retail, office and industrial sectors and has completed in excess of $1.2 billion of transactions in 28 states to date. MRC's vertically integrated platform encompasses origination, servicing, asset management, property management and construction management expertise to maximize the value of its investments.
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