New York-based real estate firm Madison Realty Capital (MRC) has provided first and second mortgage financing totalling about $124m for the acquisition and future renovation of a 15-building, 175,000 square foot portfolio of residential and mixed-use properties in the East Village, according to Real Estate Capital’s sister publication Private Debt Investor.
MRC’s announcement didn’t name the borrower, although a report by the Commercial Observer, citing sources familiar with the deal, said the loan was made to Raphael Toledano’s Brookhill Properties. Brookhill had closed on its $97m acquisition deal for the properties from its previous owners, the Tabak family, earlier in September.
“In this case, we were able to provide a one-source capital solution by participating in various tranches of the capital stack, which enabled the borrower to complete the acquisition, and to proceed with his plan to renovate and reposition the portfolio,” Josh Zegen, co-founder and managing principal of MRC, said in a statement.
The transaction takes MRC’s deal volume to 24 debt investments totaling $590m this year. That includes special situation loan origination opportunities and loan acquisition deals, mostly in the New York area. MRC expects to complete $1bn of debt and equity transactions in 2015.
MRC is a New York-based real estate investment firm that pursues real estate equity and debt investments in the mid-market. The firm was founded in 2004 and has invested about $3.5bn in the multifamily, retail, office, industrial and hotel sectors since then.