Madison Realty Provides $66M in Financing for 3 M-U Properties in Queens
- Nov 05, 2014
Madison Realty Capital has closed on $66 million in bridge financing for three adjacent properties in Flushing, N.Y., owned by the same borrower, who plans to lease up and stabilize the properties following the refinancing.
The borrower’s name was not revealed.
“The location of these assets is tremendous, right in the heart of downtown Flushing, a thriving business center of Queens,” Josh Zegen, MRC’s co-founder & managing principal, told Commercial Property Executive. “We feel there is abundant demand for commercial and residential real estate here, which supports the borrower’s business plan.”
The properties consist of a 100,500-square-foot retail and office property, a 24,000-square-foot retail condominium, and an 88-car parking garage.
“This transaction was driven by the borrower’s desire to recapitalize the properties, and we were able to provide a financing solution tailored to the need. Additional collateral includes 18 unsold residential condominiums in the borrower’s adjacent Victoria Towers project,” Zegen said. “Our fully integrated team analyzed this complex, multi-asset deal quickly and was comfortable with the local market given our previous experience here.”
Known as the Flushing Landmark Building, the premier three-story mixed-use office and retail building is located at 41-60 Main St., in the epicenter of Flushing, and boasts 250 feet of frontage along Main Street and has a tenant base comprised of credit-worthy tenants including Capital One, MetLife, New York Community Bank and East West Bank.
The retail condominium at 133-38 Sanford Ave. consists of 24,000 square feet evenly distributed over two floors, with ceiling heights in excess of 11-feet and direct access to Main Street.
“Flushing has seen real estate sales and rental pricing strengthening for several years as a result of significant business and job growth,” Zegen said. “The neighborhood is also close to Citi Field and the USTA’s National Tennis Center, both of which attract tourist traffic to downtown Flushing.”
Over the past decade, MRC has invested in approximately $2.5 billion of transactions in the multi-family, retail, office and industrial sectors.