NEW YORK, May 21, 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 $13 million in financing for the third-party purchase of a defaulted note. The note, originated by Community Preservation Corporation (CPC) and carrying an outstanding principal balance of approximately $17 million, is secured by a condominium development located at 143-159 Classon Avenue in the Clinton Hill section of Brooklyn, New York.
MRC funded $9 million to the borrower at closing, and provided a commitment for an additional $4 million of construction financing, subject to satisfaction of various conditions. The loan will finance the borrower's purchase of the existing debt from CPC, as well as construction costs needed to obtain a certificate of occupancy for a portion of the project.
"Our track record in note purchase financing, combined with our fully integrated real estate platform, allows us to understand the nuances of a complicated real estate transaction such as this and close in a relatively quick timeframe," said Josh Zegen, Co-Founder and Managing Member of MRC. "Both note sellers and borrowers value the certainty of execution we bring to all transactions. Once again, we were able to facilitate the right structure for this deal with a superior risk adjusted return."
The property is comprised of two contiguous residential buildings located at 143 and 159 Classon Avenue. 143 Classon Avenue is a five-story building containing approximately 37,492 sellable square feet across 17 residential units. 159 Classon Avenue, also a five-story building, contains approximately 35,210 sellable square feet across 20 residential units. Common recreation spaces are located in the cellar. Tenants have use of individual storage lockers in the sub-cellar of 143 Classon Avenue, while the sub-cellar of 159 Classon Avenue offers parking for 18 cars.
The property broke ground in 2007 but the difficult economic environment caused the original developers to file for bankruptcy. The project is in various stages of completion, with 143 Classon Avenue almost finished and 159 Classon Avenue requiring significant construction work before receiving its final certificate of occupancy.
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 approximately $1 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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SOURCE Madison Realty Capital