Completes deal for Shirokia Tower within six days, closes financing on eve of auction
NEW YORK, April 10, 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, closed a $14 million first mortgage loan to recapitalize a mixed-use building in Flushing, preventing an imminent foreclosure auction and enabling the borrower to maintain control of the asset. Aside from the knowledge gained from closing in excess of $125 million of financing for major properties in downtown Flushing, MRC was familiar with this specific transaction and was able to leverage its understanding to successfully close the deal within six days. The borrower was able to improve the capital structure with MRC's fresh equity and avoid an auction which had generated significant investor interest, with nearly 100 potential bidders.
Shirokia Tower, located at 142-28 38th Avenue in Flushing, was developed in 2009 as a mixed-use building. The 53,255-square-foot property is an 11-story mixed-use building with a total of 23 residential condominiums, three commercial units, and 47 parking spaces. The property is located in a prime area in Flushing, only a block from the major mixed-use development known as Flushing Commons. The project will bring approximately 600 residential units, 500,000 sq. ft. of commercial space and 15,000 sq. ft. of additional community facility space.
The deal presented an ideal opportunity for MRC to capitalize on its local market experience in Flushing, familiarity with the specific building, and capital structuring expertise to rapidly create a rescue financing solution for the borrower. "Our knowledge of the Flushing market helped us get comfortable with this property very quickly," Josh Zegen, Co-Founder and Managing Principal of MRC. "We have made several substantial loans in Flushing, and had even reviewed Shirokia Tower itself for a deal in the past. These ingredients enabled us to move fast and really deliver for this borrower."
Downtown Flushing, Queens is one the most diverse neighborhoods in the United States, with residents of Chinese and Korean descent making up more than 50 percent 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.
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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