257-263 West 34th Street development site - Manhattan, NY
Joshua Zegen, Madison Realty CapitalManhattan, NY Madison Realty Capital (MRC) has provided $48.5 million of financing to Cornell Realty Management for a development site located at 257-263 West 34th St. The property, located in the Penn Station/Madison Sq. Garden area of the West Side, is an assemblage of adjacent sites between Seventh and Eighth Aves. that the borrower plans to develop into a 35,000 s/f flagship retail building with four floors above ground and 80 ft. of frontage on West 34th St.
MRC closed the transaction within 10 days of sourcing the opportunity. The borrower needed immediate funding and MRC was able to rapidly provide the required financing, enabling the borrower to buy out a partner, take ownership of the properties to complete the assemblage, and proceed with pre-development. MRC funded $42.5 million at closing and provided a future funding commitment of $6 million.
This high-profile site is situated in an area popular with big-box retailers due to high foot traffic and proximity to transportation, entertainment, and major employment centers. The property is located one block North of Madison Sq. Garden and Penn Station, which serves more than 600,000 commuters a day and is the nation’s busiest train station, and a block from the Macy’s Herald Sq. flagship store. In addition the massive Hudson Yards project is underway nearby, further promoting development of the West Side as a whole. Upon completion the property will be offered as a single-user or multi-user retail opportunity. Plans call for a glass façade that promotes natural light, and high-quality open space within.
“We believe this development is well positioned to be successful given its prime Manhattan location. We’re pleased to support the project with a customized financing solution delivered on a short timeframe,” said Josh Zegen, co-founder and managing principal of MRC, who arranged the financing. “MRC offers borrowers speed and certainty of execution, helping them keep pace with the demands of a competitive market, and this deal is perfect of example of what we can do. With our local market expertise and the support of our vertically integrated platform, we are able to underwrite and close transactions on an accelerated timeline.”
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 $4 billion of transactions in the multifamily, retail, office, industrial and hotel sectors.
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