New York-based real estate debt and equity manager Madison Realty Capital has raised $309.8 million for its Madison Realty Capital Debt Fund III, according to an SEC filing posted last week. This marks the fund’s second close and brings the firm to a little more than half of its $600 million fundraising target. The fund also has a hard cap of $750 million.
The firm had a first close on this fund at $145.4 million last August, as PDI reported at the time. The fund will originate and acquire commercial mortgage loans, senior loans, bridge loans, mezzanine debt and preferred equity interests in real property and may employ up to 50 percent leverage in the portfolio. Loan tenors will be between one and three years. Madison Realty’s second fund raised about $350 million in 2013 and is still being invested.
The new fund collected $150 million from the Oregon Public Employees Retirement Fund earlier this month. The firm also received a $40 million investment from the New York State Teachers Retirement System in November. The fund will invest 50 percent of the money raised in the New York City/Tri-State area, where the firm has already executed a lot of deals using existing capital.