NEW YORK—Madison Realty Capital (MRC) has acquired ownership, through foreclosure proceedings, of 364 Bay Street, a 55,000-sq.-ft., two-story retail center currently under construction in St. George, Staten Island.

In July, MRC purchased the defaulted first mortgage note and second mortgage note with an unpaid principal balance of $2.9 million from a local bank. The company plans to complete construction of the property and market it to national and local retailers.

Located on the St. George waterfront, once construction is completed, the property will offer 22,000 sq. ft. of space on the ground level and 20,300 sq. ft. on the second floor. Madison expects to complete construction in approximately 12 to 18 months. MRC has retained Casandra Properties to serve as the property’s leasing agent.

“The momentum in St. George is tremendous and we think it’s a great place to invest,” said Joshua Zegen, co-founder and managing member of MRC. “We were very excited by the opportunity to buy this property through the debt at a significant discount to both today’s underlying real estate value and replacement cost.”