Financing from Investment Firm Helps Borrower Retire Existing Debt, Provides Funds for Final Construction of 99-Unit Residential Condo Portion
NEW YORK, June 17, 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 $50 million financing for Victoria Towers, a major mixed-use development, along with an additional property in Flushing, Queens. Victoria Towers is a 21-story building featuring 99 residential condominium units, a 24,000-square-foot commercial condominium, and 88 below-grade parking spaces. The MRC team was able to quickly analyze and understand this large, complex property and its capital structure, and complete the transaction within the timeframe required by the borrower.
"We were able to fund this first mortgage bridge loan at an attractive basis, while enabling the borrower to simplify the capital structure of this complicated, multi-use project and finish up construction of the condos," said Josh Zegen, Co-Founder and Managing Member of MRC. "This kind of complicated deal really suits the MRC skill set, and it's gratifying to close another deal that really helps stabilize an attractive project in a vibrant New York City location."
The property is centrally located in an active section of downtown Flushing, Queens, one the most diverse neighborhoods in the United States, with residents of Chinese and Korean descent making up more than 50% of the population. The area has seen significant business and job growth for each of the past seven years, and real estate sales and rental pricing has strengthened as a result. Flushing is also in the immediate vicinity of attractions like Citi Field and the USTA's National Tennis Center, which drive tourist traffic through the market.
Anand Melwani of ARM Real Estate Group and Francis Leung of Okada & Company represented the borrower in the transaction.
About Victoria Towers
Victoria Towers is a 95% complete, 21-story residential condo that contains approximately 150,000 gross square feet. It is comprised of 99 residential units totaling 108,000 sellable square feet from floors 5 through 21, one commercial condominium totaling 24,194 sellable square feet and 88 below grade parking spaces. The residential property includes luxury amenities for its residents such as a gym and lap pool. In addition, the retail property is a 3-story commercial building with retail space at grade level and commercial space on the two floors above. The retail property has a total of 100,000 gross square feet across 52 commercial units. Both properties benefit from great visibility and easy access to nearby public transportation.
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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