Partnership to Renovate and Reconfigure Prominent 16-story Midtown East Rental Building Known as The Buchanan
NEW YORK, March 7, 2016 /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 the acquisition of The Buchanan located at 160 East 48th Street in midtown Manhattan. MRC is purchasing the 16-story, 300,000 square-foot mixed use property in partnership with USAA Real Estate Company. The partnership will be the fourth owner of the Property since it was built in 1928, and the first in the last 64 years.
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The building is comprised of five interconnected mid-rise towers which surround a garden courtyard, and contains 289 apartments and approximately 16,000 square-feet of retail and office space. The Property also contains nearly 140,000 square feet of excess air rights. The partnership plans to initiate a comprehensive capital improvement program geared towards renovating and reconfiguring existing residential units, enhancing operating efficiencies, and creating a high-end amenity package.
The residential unit mix includes oversized studio, one-bedroom, two-bedroom and three-bedroom apartments stretching from the second floor through the 16th floor, with penthouse units offering private outdoor terraces. The retail space and office space, which spans predominantly along 200 feet of frontage on 3rd Avenue and roughly 145 feet of frontage along 47th and 48th Streets, is currently 100% occupied.
"We believe that The Buchanan provides a tremendous value proposition backed by sound fundamentals with sustainable growth. This was a rare chance to acquire a full block asset exhibiting predominantly core characteristics while providing significant value-add potential," notes Josh Zegen, Co-Founder and Managing Principal of MRC. "We are very familiar with this neighborhood and are looking forward to successfully executing our business plan, which is very similar to what we've accomplished a few blocks away at 361 East 50th Street. We are also excited to complete our second transaction with our partner USAA Real Estate Company."
Len O'Donnell, President and CEO of USAA Real Estate Company, added: "We are extremely pleased to be expanding our relationship with Madison Realty Capital. They have proven to be an outstanding partner and we are looking forward to the successful execution of this transaction. Tom Bermingham and our New York team are creating a truly exceptional portfolio of assets, as we continue to increase our presence in the market.
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 $4 billion of transactions in the multifamily, retail, office, industrial and hotel sectors.
About USAA Real Estate Company
USAA Real Estate Company, with over $15 billion in assets under management, provides co-investment, acquisition, build-to-suit and development services for corporate and institutional investors. The USAA portfolio consists of office, industrial, retail and hotel properties as well as investments in real estate operating companies. USAA Real Estate Company is a subsidiary of USAA, a leading financial services company, serving military families since 1922. For more information, visit www.usrealco.com.
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