Investment Firm Completes Acquisition for Less Than 50% of Replacement Cost; Will Market Former Condo as Rental in Thriving Waterfront Location
NEW YORK, July 13, 2012 — Madison Realty Capital (MRC), an institutionally backed commercial real estate investment firm and asset manager specializing in flexible debt and equity financing solutions for middle-market transactions throughout the United States, has taken ownership of 224 Richmond Terrace, a 60,000-square-foot, 40-unit residential property with a retail component located in St. George, Staten Island. Madison previously purchased the non-performing first mortgage for $8.4 million (approximately 66% of the unpaid principal balance and 52% of the payoff balance including interest) from Bank of New York Mellon, and has now taken title by completing foreclosure proceedings. Joshua Zegen, Co-Founder and Managing Member of MRC, made the announcement.
The property is located directly on the Staten Island waterfront, in the thriving St. George submarket. St. George is experiencing a renaissance as developers recognize the opportunity to offer residential properties with stellar views and great access to Manhattan transportation links. Additionally, a $220 million renovation of the existing courthouse complex is underway, cementing St. George's position as the municipal center of Staten Island and stimulating economic growth in the area. Several new commercial and recreational projects (including a city RFP for the largest Ferris wheel in the world, offering Manhattan views) are building further momentum in St. George. The Staten Island Yankees ballpark is yet another local attraction.
"This submarket has become an exciting part of the New York City waterfront, but remains somewhat overlooked by investors. We identified a great opportunity to access this well-located property at an attractive basis through the senior debt, and now we're putting the finishing touches on construction and marketing it as a rental," Mr. Zegen said. "Our vertically integrated platform, which incorporates construction management, asset management, and property management in-house, will enable to us to seamlessly execute our strategy for maximizing value. Given the local fundamentals and the high quality of these units, we expect the leasing effort to yield strong results."
224 Richmond Terrace, known officially as "The View," rises 11 stories above the waterfront and features unobstructed views of the Manhattan skyline and the Statue of Liberty. In addition to the 40 apartments, The View also offers approximately 5,000 square feet of retail space and a community center, and benefits from a 15-year 421a tax abatement. The residential units feature high-quality design and amenities, having been originally intended for sale to Financial District commuters.
The original owner planned the property as a condominium, but defaulted on its construction financing in 2009, after which the original lender filed a foreclosure action. Construction is substantially complete, with only some interior installations and cosmetic detailing to be done.
Casandra Properties has been appointed as leasing agent for both the residential and retail portions of the property.
About Madison Realty Capital (MRC)
Founded in 2004, Madison Realty Capital is an institutionally backed commercial real estate firm specializing in flexible debt and equity financing solutions for middle-market transactions throughout the United States. MRC invests in the multifamily, retail, office and industrial sectors and has completed approximately $1 billion of transactions in 28 states to date. MRC's vertically integrated platform encompasses origination, servicing, asset management, property management and construction management expertise to maximize the value of its investments.
MADISON REALTY CAPITAL
825 Third Avenue – 37th Floor
New York, NY 10022
http://www.madisonrealtycapital.com/
Contact:
Great Ink Communications – 212-741-2977
Eric Waters (Email)
Tom Nolan (Email)
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