Zegan of Madison Realty Capital arranges $17 million acquisition of loan portfolio; Located in Brooklyn's Midwood, Red Hook and Vinegar Hill

Madison Realty Capital (MRC) has purchased a portfolio of three defaulted loans from a local New York lender. The aggregate principal balance of the purchased loans, secured by three different multifamily and mixed-use properties, was $17 million. Josh Zegen, co-founder and managing member of MRC, structured the deal. The addresses of the properties were not disclosed. "We continue to see lenders pruning their portfolios to clean up their balance sheets and maximize their capital," Zegen said. "MRC is always on the lookout for the resulting distressed loan opportunities. With our vertically integrated platform, MRC is well-equipped to pursue various exit strategies to maximize value. MRC has been active in Brooklyn for many years and we're able to understand asset values and risk in these neighborhoods." The properties securing the loans are a partially complete mixed-use residential development in Midwood, a 23-unit residential rental property in Red Hook, and a seven-story condominium building in Vinegar Hill. MRC is an institutionally backed real estate private equity firm focused on real estate equity and debt investments in the middle markets throughout the U.S. Founded in 2004, MRC has invested in over $2 billion of transactions in the multifamily, retail, office and industrial sectors. MRC's vertically integrated platform encompasses origination, servicing, asset management, property management and construction management expertise to maximize the value of its investments.