Madison closes $23.5m development site loan

The real estate asset manager has closed on a $23.5 million first mortgage loan to Heritage Equity Partners, an investment banking firm, to finance a development site located in New York.

Real estate asset manager Madison Realty Capital (MRC) has provided a $23.5 million loan to Heritage Equity Partners, a distressed corporate and properties specialist, to finance the acquisition of a development site located in Brooklyn, New York, the firm announced on Monday.

The site is located at 564 St Johns Place in the Crown Heights and is currently operating as a rental parking facility. The financing will enable Heritage Equity Partners to develop an eight-story residential rental building on the sites, to include 172 residential units and 86 on-site parking spaces.

Josh Zegen, co-founder and managing principal of MRC, said: “The location of this site made it an attractive deal for MRC to finance. The Crown Heights neighborhood continues to grow as residents look for more affordable options throughout Brooklyn, so we expect this property to draw considerable interest upon completion.” MRC has previously completed transactions with Heritage Equity Partners.

The site will grow from 31,943 square-feet to 163,754 total square-feet when finished, and consist of 26 studios, 110 one-bedroom units, 32 two-bedroom units, and 4 three-bedroom units.

The institutionally-backed and New York-based MRC pursues equity and debt investments in the US mid-market. Founded in 2004, it has invested more than $2.2 billion of transactions in multi-family, office and industrial sectors.