Madison Realty Capital takes ownership of Staten Island property

Madison Realty Capital, 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 U.S., has taken ownership of 224 Richmond Terr., a 60,000 s/f, 40-unit residential property with a retail component located in the St. George neighborhood. Madison previously purchased the non-performing first mortgage for $8.4 million (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. The property is located on the Staten Island waterfront, in the 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 the borough and stimulating economic growth in the area. Several new commercial and recreational projects 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," said Joshua Zegen, co-founder and managing member at Madison. "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," Zegen said. 224 Richmond Terr., 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 5,000 s/f 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. 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.