NEW YORK CITY – 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 $37,000,000 in financing for a 92-unit residential conversion project in Williamsburg, Brooklyn.
MRC provided financing to the borrower to complete redevelopment of two properties – a church and the adjacent school building – formerly owned by the Roman Catholic Diocese of Brooklyn. The financing will be used to complete construction and retire existing debt on the property. Joshua Zegen, Co-Founder and Managing Member of MRC, made the announcement.
The 92-unit, 78,773-square-foot project is comprised of two different sites, 163 North 6th Street (the former church) and 180 North 7th Street (the 5-story former school building). The church building will be converted to offer 38 residential units, while the school building will be repositioned as a 54-unit apartment complex. The loan from MRC is expected to see the project through to stabilization. Robert Gordon’s Rushmore Capital Partners advised on the transaction. The Williamsburg rental market is thriving, and this project is well-positioned to benefit from the positive underlying fundamentals in the market.
“MRC continues to provide lending solutions for experienced borrowers with high-quality transitional properties, and we’ve been successful in building a steady pipeline of increasingly large transactions,” said Mr. Zegen. “This particular deal is a perfect fit for MRC. Given our experience as an owner, developer and lender in this market, we were able to understand the merits of this transaction rather quickly and provide the flexibility the sponsor desired. The location is stellar, and demand for centrally located apartments in Williamsburg has never been stronger. The history of the buildings will make this an even more unique place to live. Given the robust local market, the excellent location, and the experience of the borrower with development in Williamsburg, we fully expect the property to stabilize quickly.”
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 $1.2 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.