NEW YORK, Dec. 16, 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 a $27,000,000 first mortgage loan that will be used for the repayment of existing construction financing on the Paper Factory hotel located at 37-06 36th Street in Long Island City, Queens, NY. In addition, the borrower will also use the financing for the purchase and repositioning of two contiguous buildings currently operating as short-term stay hotels located at 1109-1111 Manhattan Avenue and 66-80 Clay Street in the Greenpoint section of Brooklyn.
Joshua Zegen, Co-Founder and Managing Member of MRC, made the announcement.
The borrower purchased the six-story 81,000 square-foot Long Island City warehouse that served as a thriving paper factory industrial property for years in September 2012. The borrower spent the last year renovating the property into a trendy loft hotel with 122 guestrooms, retaining the location's commonly associated "Paper Factory" name. The finishing touches are currently being added to the location which is now substantially complete and expected to open later this month. The property includes a gym, office and conference space, as well as a meeting space; the first floor offers a modern lobby, restaurant, gift shop, and computer stations.
The 1109 Manhattan Avenue property is a 4-story, 22,875 square-foot hotel offering 101 rooms. 66-76 Clay Street is a 3-story, 21,000 square-foot hotel with 91 rooms. The borrower intends to pursue an aggressive renovation strategy and reposition both properties, bringing them to market with similar finishes as the Long Island City Paper Factory hotel.
"Our experience funding similar projects throughout New York City allowed us to understand this borrower's needs, facilitate a suitable structure and close the deal, all in a relatively quick timeframe," said Mr. Zegen. "The outer boroughs are becoming increasingly desirable locations for lodging, particularly for tourists looking for affordable alternatives to Manhattan hotel stays. We are pleased to have provided the financing for this latest transaction and look forward to the completion of this unique hotel portfolio."
About 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 $1.4 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