Madison Realty Capital has provided a $14.5 million bridge loan to help a borrower avoid foreclosure and complete development of a 90,000 square-foot project in Kew Gardens, N.Y.
The property was 97% complete but went into foreclosure after the loan had matured in the depths of the credit crisis. The loan from MRC enabled the borrower to repurchase its original mortgage debt from the previous lender at a discount, ending the foreclosure process and complete the certificate of occupancy process and market the building to potential residents.
“This deal is a great example of our ability to approach complex real estate transactions with speed and flexibility,” said Joshua Zegen, co-founder and managing member of Madison Realty Capital.
The recapitalization allows the borrower to continue building a 90,000 square-foot project that includes 52 residential units, an 8,224 square-foot community facility and a 52-spot parking garage.
The property features modern amenities including mahogany wood floors, marble bathrooms, stainless steel appliances, a state-of-the-art fitness center, social lounge with catering kitchen, dining room, high speed wireless network, library and children’s playroom.
According to MRC, the property is “well-positioned” to compete for buyers in its submarket.
“We were very comfortable with our basis and the market fundamentals having recently closed a $22.5 million loan in the Rego Park section of Queens,” Zegan added. “With our vertically integrated platform comprised of both debt, equity and development expertise we were able to assess and understand a complicated project and close within 30 days from application.”
