NEW YORK—Madison Realty Capital (MRC) has acquired a $23.5 million defaulted note for the Breakers at Sheepshead Bay, a 75-unit waterfront residential condominium development at 3112-3144 Emmons Ave. in Brooklyn. The note was sold by a Canadian Bank.

The overall loan purchase price of the property was not disclosed.

"After commencing the project in 2004, and completing it in 2009, the developer fell into foreclosure and ultimately filed for bankruptcy in August 2012," said Brian Shatz, co-founder and managing member of MRC. "As we have done with previous acquisitions, should we end up taking title to the property, MRC intends to tap into our vertically integrated platform of in-house construction, asset, and property management capabilities to maximize the property's long-term value."