Madison Realty Capital Provides $16.50 Million Acquisition & Construction Loan for 55,630 SF Long Island City Hotel Development by Sam Chang

NEW YORK, Feb. 16, 2018 /PRNewswire/ -- Madison Realty Capital (MRC) provided a $16.50 million acquisition and construction financing package collateralized by a partially-constructed hotel development in Long Island City, Queens. The borrower, an affiliate of Sam Chang's McSam Hotel Group, acquired 38-04 11^th Street and plans to construct a 148-key hotel comprising 55,630 square feet on the site.

The previous owner had secured approvals, cleared previous structures from the site, and completely built the foundation. McSam, a leading hotel developer in New York, plans to complete construction of the building within approximately 15-18 months. McSam has already engaged Gene Kaufman as architect to increase the room count and to create a more efficient and desirable layout within the property.

MRC funded $4.00 million at closing for site acquisition, and has committed to fund an additional $12.50 million to complete construction of the project. The $16.50 million financing package MRC is providing represents approximately 70% of the total project cost.

"We're pleased to have this opportunity to work with Sam Chang, a well-known hotel builder with a long track record of success," said Josh Zegen, Co-Founder and Managing Principal of MRC. "Long Island City is a proven hotel market, and the neighborhood as a whole continues to boom with real estate investment and development activity in all major property types."

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 $7.0 billion of transactions in the multifamily, retail, office, industrial and hotel sectors.

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SOURCE Madison Realty Capital