Madison Acquires Brooklyn Industrial Asset

Madison Realty Capital (MRC) announced this week that it has purchased 29 Ryerson Street across the street from the Brooklyn Navy Yard for $45 million. MRC, an institutionally backed real estate investment firm focused on real estate equity and debt investments in the middle markets, was able to acquire the property in an off-market transaction based on a direct relationship with the seller; terms of the deal were not disclosed. The vacant eight-story loft property previously traded hands in 2013 when 11-45 Ryerson Holdings LLC purchased it for $26.25 million with aims to convert it for hotel, retail and offices uses, according to a report from The Real Deal. Prior to 2013, the property had been owned for decades by 29 Ryerson Street LLC, an entity whose principal also controls the sole occupant of the building, a storage outfit called Total Records.

"The acquisition of 29 Ryerson illustrates how MRC is able to utilize local market knowledge and the firm's vertically integrated structure to capitalize on an investment opportunity born out of fundamental changes in the office market. Rising rents and the lack of large, classic industrial spaces throughout Manhattan has changed the value proposition and driven tenants to look elsewhere for space. With our in-house design and construction team, we will be able to accentuate the distinctive attributes of 29 Ryerson and bring a truly unique space to market," said Joshua Zegen, Co-Founder and Managing Member of MRC. "We're excited about the investment and the opportunity to participate in the transformational change that the neighborhood is experiencing."

For more news and information visit Blumberg Capital Partners.

NYC's MU Property The Grayson Sold for $99.8M

Silverstone Property Group, the New York-based real estate company, announced that it had sold 247 East 28th Street in New York, also known as The Grayson, for $99.75 million. The buyer of the property is an Asian investment company, which owns one commercial office building in the city, sources said. The property was marketed by Andrew Scandalios of HFF and the purchaser was represented by George Niblock of Friedman-Roth Realty Services.

"Silverstone is pleased with the execution of this entire project, from our initial purchase through renovation and now sale," said Josh Zegen, a Principal and co-founder of Silverstone. "We were able to reposition and resell the property ahead of schedule, which further validates our overall investment strategy. We look forward to continued investment activity in Manhattan and the boroughs."

Silverstone, through its parent company Madison Realty Capital in a joint venture with Slate Property Group and RWN Real Estate Partners, acquired the asset in February 2012 in an off-market transaction secured by Steven Vegh of Westwood Realty Associates for $53 million, or $414,000 per unit, according to CoStar data. Silverstone allocated a significant capital investment program over the last two years to the 17-story, 109,000 square-foot mixed-use tower resulting in a complete renovation of the building, which included an overhaul of the exterior, the lobby, all common areas and most units.

For more news and information visit Blumberg Capital Partners.

MRC Provides $31M for Brooklyn Office Building

Madison Realty Capital, a CRE investment firm founded in 2004, announced this week that it had provided $21 million in acquisition financing and a conditional commitment for $10 million in construction financing for an eight-story warehouse building, a one-story industrial building and a parking lot separating the two properties. Alan Shmaruk and Michael Sherman of the Soho-based Manhattes Group represented both the seller, 29 Ryerson Street LLC, and the purchaser 11-45 Ryerson Holdings LLC, in the transaction, according to a Real Estate Weekly article. The property had been owned for decades by 29 Ryerson Street LLC, an entity whose principal also controls the sole occupant of the building, a storage outfit called Total Records, according to a Crains report. The Manhattes Group will handle the leasing of the property.

"It is extremely rare a property of this size becomes available within striking distance of Manhattan. It presents an excellent opportunity for conversion to an office building, where the current demand for is greater than the supply. Due to multiple parties bidding on the property, we were pleased to achieve a price over asking," said Shmaruk, a principal at Manhattes Group.

The approximately 214,710 square-foot property, which was built in 1951, is currently being utilized as a storage warehouse. The borrower intends to renovate the building into Class A office space and pursue a leasing strategy focusing on tenants seeking attractive office space at more affordable rates than neighboring locations such as DUMBO. In addition to the office space, the property contains approximately 70 feet of frontage on Flushing Avenue. The space will be able to capitalize on the growing retail demand on Flushing Avenue due to the high foot traffic driven by the nearby office and residential buildings.

For more news and information visit Blumberg Capital Partners.

MRC Acquires $29M Loan Portfolio

Madison Realty Capital (MRC), a commercial real estate investment fund, announced this week that it had acquired a 15-note portfolio from a regional savings bank with an aggregate principal balance of approximately $28.7 million. The loan portfolio, consisting of 15 notes throughout New York City, is secured by 11 properties in Manhattan and 14 in Brooklyn, comprised of 245 residential units and 12 commercial spaces, and originated between 2006 and 2009.

"This transaction supports MRC's strategy of acquiring non-performing and sub-performing loan portfolios and then applying our vertically integrated platform, which includes servicing, property management and asset management, to maximize the underlying value of the assets," said Joshua Zegen, Co-Founder and Managing Principal of MRC.

"The credit crunch has raised the bar for everyone," Zegen told GlobeSt.com in 2008. "We are seeing more opportunity. That is the nice thing about the bridge market—you can underwrite according to what is happening in the market on that day." He added, "We are seeing more transaction volume than ever before, because we are one of the few players active in the marketplace right now."

For more news and information visit Blumberg Capital Partners.