All Future Equity and Debt Investments Will be Made as "Madison Realty Capital"
First Equity Deals After Rebranding: $17 Million of Property Purchases in Hudson Yards and on Frederick Douglass Boulevard
NEW YORK, May 14, 2014 /PRNewswire/ — Madison Realty Capital (MRC), an institutionally backed real estate private equity firm focused on real estate equity and debt investments in the middle markets, announced a branding realignment that will see the firm manage all future equity and debt investments under a single brand: Madison Realty Capital. Historically, Madison Realty Capital's equity investments were made through Silverstone Property Group (Silverstone), a 100% controlled affiliate.
In tandem with the rebranding, the firm announced two new equity transactions. MRC has acquired 440-442 Tenth Avenue, two mixed-use properties located between 34th and 35th Streets in the Hudson Yards district, and 2094-2104 Frederick Douglass Boulevard, an 11,254 square-foot retail condominium unit in West Harlem's burgeoning Frederick Douglass Boulevard retail corridor.
"We have steadily expanded our equity investment activity over the past several years, closing in excess of $600 million of direct equity transactions, supported by the same vertically integrated platform that has bolstered our success as debt investors," said Brian Shatz, Co-Founder and Managing Principal of MRC. "Our strategy is to brand all our equity and debt investments under Madison Realty Capital and make it the single identifier for all our real estate activities."
Josh Zegen, also Co-Founder and Managing Principal of MRC, highlighted two exciting new equity transactions under the MRC name to officially mark the transition. In the hot Hudson Yards neighborhood, MRC acquired two adjacent mixed-use properties at 440-442 Tenth Avenue, together comprised of two ground floor retail units totaling approximately 20,000 square-feet and 34 apartments, for $9.75 million. Atria Builders, developer of the new 399-room Marriott hotel next door, was the seller, and will retain unused air rights for the Marriott development. MRC plans to reposition the retail space to capitalize on new demand for retail in the Hudson Yards neighborhood, and will renovate and lease the vacant apartment units. Prior to the acquisition by MRC the two properties had been family-owned for approximately 50 years.
MRC also acquired 2094-2104 Frederick Douglass Boulevard, an 11,254 square-foot retail condominium unit, for $7.25 million. The property is located in one of the fastest growing sections of Harlem, which is quickly establishing itself as a highly sought-after residential neighborhood – and thus attracting retailers to serve new residents. Part of the recently completed Gateway Tower luxury residential condominium development, the retail space acquired by MRC is currently occupied by several long-term tenants. The property offers strong in-place cash flow and significant upside potential, given the increasing popularity of the neighborhood.
"We expect to add significant value to the new Hudson Yards and Harlem properties. These are well-located assets in hot neighborhoods, and we will look to unlock their potential through our actively managed platform. This is just the beginning of a substantial pipeline of equity deals that Madison Realty Capital will announce in the coming months," Mr. Zegen said. "Additionally, we remain extremely active in the debt market, supplying financing for time-sensitive deals with certainty of execution."
Madison Realty Capital's 100% controlled affiliate Silverstone will remain as an in-house property management company for MRC-owned assets, complementing the company's change up.
About Madison Realty Capital (MRC)
MRC is a New York-based real estate private equity firm and asset management company that pursues real estate equity and debt investments in the middle market. Founded in 2004, MRC has invested in over $2.2 billion of transactions in the multifamily, retail, office and industrial sectors.
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