Madison Realty Capital has provided a $40.15 million loan to real estate investor David Marx to pay off his existing $50 million acquisition loan for a hotel site in Manhattan, according to media reports.
The firm announced the deal without disclosing the borrower on Tuesday. Additional proceeds from the loan will go toward pre-development costs for the hotel, which is located on 37th Street and 11th Avenue, according to the firm’s statement.
The development site will serve as the primary collateral for the loan. Marx, who Madison Realty co-founder Josh Zegen revealed as the borrower to The Real Deal, also contributed equity and collateral to the transaction. The firm secured the transaction through its prior relationship with Marx, according to a statement.
“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,” Zegen said in a statement.
Madison Realty has been extremely active over the last several months. The firm closed a $31 million financing for a Brooklyn property last week, the third deal it had announced during the month of September. Madison Realty also announced the successful close of several deals in May and June.
Last month, Madison Realty closed its Sullivan Debt Fund on $350.4 million. The firm typically lends between $3 million and $50 million per transaction, with a focus on multi-family condominiums, retail offices, industrial facilities, student housing and medical offices.