Madison Realty Capital, a real estate equity and debt investment firm focused on the mid-market, provided $81million of financing for 55 Wythe Avenue in Williamsburg, Brooklyn in New York City. The developers, Level Hotel Brooklyn, are building a 260,000-square-foot mixed-use tower that will feature restaurants, 183 guestrooms, retail space and five stories of commercial office space.
After MRC provided the initial acquisition financing of $18 million in May last year, the firm continued talking to the borrower and expanding its financing solution to enable the sponsor to successfully complete the project.
55 Wythe Avenue will be a 22-story tower located one block north of the popular Williamsburg Wythe Hotel. The development will add to the growing retail landscape by providing an additional 40,000 square feet of retail space, ideal for restaurants and apparel stores. On top of the retail, the building will feature a public rooftop garden. The office component will be located in the lower portion of the building and will target creative and technology firms. The Level Hotel will be located in the upper portion of the building with 183 guestrooms, a banquet hall and pool deck.
“We are excited to provide this subsequent round of financing to fully capitalize the project. The sponsor has been able to make significant progress since we closed our initial acquisition loan by substantially completing all foundation work and building the one-story retail component of the project,” Josh Zegen, co-founder and managing principal of MRC, said in a statement.
“MRC has an in-depth understanding of this market having completed a significant volume of deals as an owner, developer and lender and we look forward to watching this successful project as the neighborhood continues to transform,” he added.
Andy Nemeroff and Michael Nemeroff of Imperial Capital Company, and Joel Friedman of Nationwide Realty, represented the borrower in the transaction.
MRC is a New York-based real estate investment firm that pursues real estate equity and debt investments in the mid-market. Founded in 2004, MRC has invested in approximately $3 billion of transactions in the multifamily, retail, office and industrial sectors.