Madison Realty Capital (MRC) has provided a $50 million first mortgage loan collateralized by a development project across 58 and 66 Gerry Street and coupled with an existing office building and additional development site at 25 and 33 Bartlett Street in the Broadway Triangle neighborhood of Brooklyn.
The development, situated on a 30,037-square-foot lot, includes a nearly eighty percent complete condominium project comprised of two adjacent seven-story buildings and ground-floor retail, a completed 7,470-square-foot office building, and a vacant residential development site.
The sponsor is an experienced local developer and repeat MRC borrower who first acquired the property in December 2016. The time-of-the essence financing will be used to retire the existing debt on the development, complete construction of the condominium project, and cover all costs associated with the transaction.
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“MRC’s lending expertise and familiarity with the specific needs of this repeat borrower allowed us to design a customized funding package within a compact timeframe,” said Josh Zegen, Co-Founder and Managing Principal of MRC. “In this case, MRC was able to capitalize on the opportunity to originate a loan for a well-located, high-quality condo development with additional liquid assets including a boutique office building and buildable lot, as well as a healthy last dollar exposure. The development’s structurally complete buildings and limited cost/schedule overrun risk made this an even more attractive project for us to finance.”
Upon completion, the condo development located at 58 Gerry Street and 25 Bartlett Street will include 41 residential units totaling 80,117 square feet, 12,625 SF of retail space across the ground and cellar levels, and 21 parking spaces. The property also features a 10,000-square-foot vacant lot directly north of the completed office building at 66 Gerry Street, offering the potential for an additional affordable housing project.
Progress to date on the condo development includes completion of the foundation, superstructure, and exterior framing. The construction is expected to be completed by Q4 2019.