NEW YORK, NY– 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 $40,150,000 loan to fund the discounted payoff of the existing $50,000,000 acquisition loan on a prime Manhattan development site, located directly across the street from the Javits Center on the corner of 37th street and 11th Avenue. Additional proceeds of the loan will be used to fund predevelopment costs for the anticipated 265,000 square-foot hotel development project on the site. Joshua Zegen, Co-Founder and Managing Member of MRC, made the announcement.
MRC secured the financing opportunity based on its prior relationship with the borrower, which has completed multiple transactions with MRC over several years. In addition to the development site, which is the primary collateral for the financing, the borrower contributed additional equity and collateral in support of the transaction.
“This latest financing is consistent with our focus of providing lending solutions that meet the needs of experienced borrowers pursuing quality time sensitive real estate opportunities,” said Mr. Zegen. “The location and long-term strategy for this property have positioned it for success, and the speedy completion of this deal will allow the borrower to move forward without further delay. We are pleased to be the lender of record on this transaction.”
The site will be developed into a 420 key hotel featuring several food and beverage outlets as well as meeting space. In a show of confidence in the opportunity, in addition to the development site, the borrower contributed other properties as additional collateral.
The project is one of the many new developments at Hudson Yards. After the 2005 rezoning, the area now has capacity for approximately 26 million square feet of new office development, 20,000 units of housing (of which almost 5,000 units will be affordable), 2 million square feet of retail, and 3 million square feet of hotel space. MRC is excited to support the transformation and redevelopment of the area.