Lancewood Capital provides $21.5 million condo inventory loan for 1295 Madison Ave.

Manhattan, NY Lancewood Capital provided a $21.5 million condo inventory loan to finance a newly-developed condo building located at 1295 Madison Ave. in the Carnegie Hill neighborhood.

The newly-constructed condominium building is located one block from Central Park on the corner of 92^nd St. and Madison Ave. The developer began successfully selling units in 2023 and sought to recapitalize the remaining condo inventory at a near-bank rate while marketing the units for sale.

Lancewood Capital was able to accommodate the sponsor, Adellco, with interest-only financing at a near-bank rate while closing in under two weeks. The financing provided the sponsor with additional time to market the units to prospective buyers and allowed the sponsor to lower their debt service due to the lower leverage point of the lender. 

Lancewood's Matt Schatzle and Justin Godner structured the loan investment. The financing was arranged by Lantern Real Estate's Tal Bar-or and David Strongwater. 

“This is a beautiful and well-built property that the market has absorbed well, as represented by the sponsor’s successful recent sales," said Schatzle. "We were able to provide near-bank capital quickly and efficiently, which provided a favorable outcome for the sponsor."

Lancewood Capital, which is focused on $1-50 million real estate credit opportunities, continues to be a very active, direct, lower-leverage commercial real estate lender as well as a provider of senior note financing to alternative commercial real estate lenders. The family office continues to be active during a time when many conventional capital providers have had a challenging time meeting borrowers’ needs. 

“The disruption in both the credit and equity markets, predominantly because of the higher interest rate environment, has consistently allowed for the firm to execute for borrowers at a time when many could not," said Justin Godner. "This execution and earned trust allowed for us to develop many new and valued relationships that we will have for a long time.”