First mortgage loan to retire existing financing and fund construction of mixed-use building
NEW YORK, Feb. 12, 2015 /PRNewswire/ — Madison Realty Capital (MRC), an institutionally backed real estate investment firm focused on real estate equity and debt investments in the middle markets, provided $65.0 million of financing for 19 Kent Avenue in Williamsburg, Brooklyn. The vacant 80,000 square foot site will be transformed into a 384,000 square foot mixed-use building with retail, office and community facility components. Loan proceeds will be used to retire the existing debt encumbering the property and fund future construction costs. The transaction presented an ideal opportunity for MRC to capitalize on its local market knowledge and structuring expertise by creating a capital solution that provided adequate proceeds at close with a future funding component.
The property is comprised of four adjacent parcels occupying the entire block from Wythe Avenue to Kent Avenue between North 12th Street and North 13th Street. The site will include 200 feet of frontage on Kent Avenue, 400 feet on North 13th Street, and 200 feet on Wythe Avenue, which will be critical when marketing the retail component of the project. Current plans call for a 384,000 square foot building with eight floors ranging in size from 30,000 to 50,000 square feet each. The project will provide the necessary state-of-the-art office stock in a neighborhood with limited inventory as well as various retail outlets, which will capitalize on the growing population density.
Josh Zegen, Co-Founder and Managing Principal of MRC, made the announcement.
"When the borrower approached us with this opportunity, we immediately recognized the unique characteristics which make this investment attractive. A vibrant Brooklyn location coupled with strong local sponsorship make this transaction particularly strong, in addition to its many other benefits," said Mr. Zegen. "The project will address a significant imbalance within the supply/demand for new office in Brooklyn as firms in the technology, R&D and advertising sectors continue to demand new office stock close to their employees with unique, open floor plates. Our experience and understanding of the Williamsburg market speaks for itself and this is another prime example of the type of project Madison Realty Capital seeks out as one of the city's leading commercial real estate lenders. We look forward to working with the sponsor to make this project a reality."
About Madison Realty Capital (MRC)
MRC is a New York-based real estate investment firm that pursues real estate equity and debt investments in the middle market. Founded in 2004, MRC has invested in approximately $3 billion of transactions in the multifamily, retail, office, industrial and hotel sectors.
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