Madison Realty Capital Closes $13.0 Million Loan for Time-Sensitive Acquisition of Upper East Side Townhouse Property Borrower Plans Conversion from Existing Commercial Use to Premier Residential Condominiums
NEW YORK, May 1, 2014 /PRNewswire/ -- Madison Realty Capital (MRC), an institutionally backed real estate private equity firm and asset manager focused on real estate equity and debt investments in the middle markets, announced the closing of a $13.0 million loan that will be used to finance the acquisition and redevelopment of the landmarked Upper East Side townhouse located at 39 East 72nd Street. By providing financing, MRC facilitated a closing within an extremely limited time frame. The transaction will enable the borrower to reposition the 25-foot-wide townhouse as a premier new residential development in order to capitalize on the highest and best use of the property.
"We have established a reputation for certainty of execution in time-sensitive deals, which helped us source and secure this great opportunity," said Josh Zegen, Co-Founder and Managing Member of MRC. "Our lending platform continues to identify quality middle-market deals in great locations, with experienced sponsors, helping us achieve our overall goal of strong risk-adjusted performance. This particular property has an interesting history, in addition to its stellar location and landmark status, and the borrower's business plan should add significant value."
The five-story townhouse at 39 East 72nd Street was constructed in 1881 by the architect and developer Robert B. Lynd as his personal residence. Formerly the home of fashion designer and heiress Gloria Vanderbilt, the townhouse is now occupied by a mix of commercial users, including two art galleries. Following the landmarks process, the borrower plans to convert the townhouse into luxury residential condominiums. The Upper East Side is a perennial favorite among condominium buyers, offering access to all of New York while maintaining a residential feel. Residential condominiums in the neighborhood are selling in excess of $2,500 per square foot.
About Madison Realty Capital (MRC)
Madison Realty Capital (MRC) is an institutionally backed real estate private equity firm focused on real estate equity and debt investments in the middle markets throughout the United States. Founded in 2004, MRC has invested in over $2.0 billion of transactions in the multifamily, retail, office and industrial sectors. MRC's vertically integrated platform encompasses origination, servicing, asset management, property management and construction management expertise to maximize the value of its investments.
Read more news from Madison Realty Capital.
SOURCE Madison Realty Capital