Madison Realty Capital Completes $21.5M Note and Deed Purchase of 385 Union Avenue in Williamsburg to Take Control of Rental Property

NEW YORK, May 16, 2012 /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 that it has purchased the note and deed of 385 Union Avenue, a 6-story, 53,000-square-foot residential rental property in Williamsburg, Brooklyn, for approximately $21.5 million. The property, located within one of New York's fastest growing submarkets, includes 47 apartments, 24 parking spaces and a gym. The seller of the loan was a bank which had taken over the original failed lender on the project through an FDIC loss share deal. Joshua Zegen, Co-Founder and Managing Member of MRC, made the announcement.

"It was exciting to bring this transaction to a successful conclusion in less than 30 days. We were able to buy this transaction at a very attractive basis and well below replacement cost given the complexities of understanding all of the components and counterparties," Mr. Zegen said. "Going forward, we expect that our vertically integrated platform, which incorporates debt, equity and development expertise, will unlock the true value of this fundamentally strong piece of real estate."

The property is substantially complete and approaching full occupancy. The original owner had defaulted on its construction financing in 2009, and the property was placed in receivership after the original lender filed a foreclosure action. 

The acquisition negotiated by Madison rescues the property from "real estate limbo" by, among other things, assuring stable ownership, providing for finishing touches on construction, and satisfying various tax and construction liens previously clouding title. 

Madison's management team intends to stabilize the property and enhance its value and visibility. Removing the uncertainty caused by financial distress will enable the building to fully compete in the market.

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 $900 million 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.

Contact:         

Great Ink Communications - 212-741-2977
Eric Waters ([email protected])
Tom Nolan ([email protected])

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SOURCE Madison Realty Capital