Madison Realty Capital Provides $13 million note purchase financing; For condo development at 143-159 Classon Avenue, Clinton Hill

Madison Realty Capital (MRC) has closed on $13 million in financing for the third-party purchase of a defaulted note. The note, originated by Community Preservation Corporation (CPC) and carrying an outstanding principal balance of $17 million, is secured by a condominium development located at 143-159 Classon Ave. in the Clinton Hill section. MRC funded $9 million to the borrower at closing, and provided a commitment for an additional $4 million of construction financing, subject to satisfaction of various conditions. The loan will finance the borrower's purchase of the existing debt from CPC, as well as construction costs needed to obtain a certificate of occupancy for a portion of the project. "Our track record in note purchase financing, combined with our fully integrated real estate platform, allows us to understand the nuances of a complicated real estate transaction such as this and close in a relatively quick timeframe," said Josh Zegen, co-founder and managing member of MRC. "Both note sellers and borrowers value the certainty of execution we bring to all transactions. Once again, we were able to facilitate the right structure for this deal with a superior risk adjusted return." The property is comprised of two contiguous residential buildings located at 143 and 159 Classon Ave. 143 Classon Ave. is a five-story building containing 37,492 sellable s/f across 17 residential units. 159 Classon Ave., also a five-story building, contains 35,210 sellable s/f across 20 residential units. Common recreation spaces are located in the cellar. Tenants have use of individual storage lockers in the sub-cellar of 143 Classon Ave., while the sub-cellar of 159 Classon Ave. offers parking for 18 cars. The property broke ground in 2007 but the difficult economic environment caused the original developers to file for bankruptcy. The project is in various stages of completion, with143 Classon Ave. almost finished and 159 Classon Ave. requiring significant construction work before receiving its final certificate of occupancy.