MRC sells Sheepshead Bay condo units for $24.5 million

According to Josh Zegen, co-founder and managing member of Madison Realty Capital (MRC), the firm has completed the sale of 49 condo units totaling 64,561 s/f and 43 parking spaces at a development in Sheepshead Bay for $24.5 million, resulting in a return on MRC's initial investment. The sale was completed by a debtor in Chapter 11 bankruptcy pursuant to a plan of reorganization. MRC was a secured creditor in the bankruptcy proceedings. MRC took control of the Breakers at Sheepshead Bay project, located at 3112-3144 Emmons Ave. in Dec. 2012 through the acquisition of a non-performing loan, after the original lender had commenced foreclosure and the borrower had filed Chapter 11 bankruptcy proceedings. The sale brings MRC's investment in the property to a conclusion, within 12 months of the original transaction. "We're particularly proud to announce the disposition of the Breakers at Sheepshead Bay property," Zegen said. "MRC had the opportunity in this complex deal to exercise every element of our fully integrated platform. Our bankruptcy and restructuring expertise was at the forefront, given that we entered the deal after the borrower filed Chapter 11. We navigated the challenges of acquiring the defaulted loan and then improving and renovating this property to maximize its value, all within the bankruptcy framework. This sale, completed pursuant to a contested and confirmed Chapter 11 plan, is a testament to MRC's ability to bring multi-dimensional real estate and financial expertise to bear on a troubled asset and successfully turn it around."