Prime Property on Smith Street is Fully Pre-Leased, Construction to Finish in 2016
NEW YORK, July 20, 2015 /PRNewswire/ — Madison Realty Capital (MRC), an institutionally-backed real estate investment firm focused on real estate equity and debt investments in the middle markets, provided a $9.0 million first mortgage loan for the acquisition and development of 232 Smith Street, a prime site located on the main thoroughfare of Boerum Hill, midway between the Bergen Street and Carroll Street subway stations. The borrower, a local developer, plans to build a 15,000-square-foot, three-level retail building, which has been pre-leased in its entirety.
The property, situated at the corner of Smith and Douglass Streets in the heart of this thriving neighborhood, boasts 100 feet of frontage on Smith Street. The Smith Street retail corridor is home to some of New York's finest restaurants and an abundance of bars, cafes, boutiques, and national retailers. The borrower intends to start construction of the new building this fall and complete it by the summer of 2016. A single retail tenant will occupy the entire 15,000 square feet, including two floors above grade and one below.
"Boerum Hill is an exciting and attractive Brooklyn neighborhood with tremendous foot traffic. Those attributes together with affluent demographics have made it a magnet for retailers, and given that context we believe this project should be successful," said Josh Zegen, Co-Founder and Managing Principal of MRC. "The borrower had a need for financing in order to take a majority interest in the property and fund construction, and MRC was able to provide certainty of execution in a complex, time-sensitive transaction."
Boerum Hill is a small neighborhood located to the north of Carroll Gardens and south of Downtown Brooklyn. The area is characterized by its low-rise scale and classic brownstone architecture, and yet offers proximity to many of Brooklyn's major attractions including Barclays Center, Brooklyn Academy of Music, and Brooklyn Flea. In addition to the many independent stores that populate the neighborhood's storefronts, national retailers like Whole Foods, American Apparel, J. Crew, Lululemon, and Intermix have established a presence here.
About Madison Realty Capital (MRC)
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 $3 billion of transactions in the multifamily, retail, office, industrial and hotel sectors.
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