MRC provides $81 million for 260,000 s/f mixed-use development project

According to Josh Zegen, co-founder and managing principal of Madison Realty Capital (MRC), the firm has provided $81 million in financing for 55 Wythe Ave. in Williamsburg. The developers are currently building a 260,000 s/f mixed-use property that will transform the neighborhood with restaurants, 183 guestrooms, retail space and five stories of commercial office space. After MRC provided the initial acquisition financing of $18.35 million in May 2014, the firm was able to leverage its pre-existing relationship with the borrower and extensive knowledge of the market to craft a financing solution that will enable the sponsor to complete the project. 55 Wythe Ave. will be a 22-story tower located one block north of the Wythe Hotel, on Wythe Ave. between North 12th and North 13th Sts. The development will add to the growing retail landscape by providing an additional 40,000 s/f of retail space, ideal for restaurants and apparel stores which continue to populate the neighborhood. On top of the retail, the building will feature a public rooftop garden offering true green space in the heart of an area once known for industry and warehousing. The office component will be located in the lower portion of the building and will target creative and technology oriented firms which continue to seek office space in the popular Williamsburg market. The Level Hotel will be located in the upper portion of the building with 183 guestrooms, a banquet hall and pool deck. "We are excited to provide this subsequent round of financing to fully capitalize the project. The sponsor has been able to make significant progress since we closed our initial acquisition loan by substantially completing all foundation work and building the one-story retail component of the project," said Zegen. "MRC has an in-depth understanding of this market having completed a significant volume of deals as an owner, developer and lender and we look forward to watching this successful project as the neighborhood continues to transform." Andy Nemeroff and Michael Nemeroff of Imperial Capital Company, and Joel Friedman of Nationwide Realty, represented the borrower. MRC is a New York-based real estate investment firm that pursues real estate equity and debt investments in the middle market. Founded in 2004, MRC has invested in approximately $3 billion of transactions in the multifamily, retail, office and industrial sectors.