NEW YORK CITY-Madison Realty Capital has sold 49 condominium units at the Breakers at Sheepshead Bay, located at 3112-3144 Emmons Avenue in Brooklyn for $24.5 million, resulting in a significant return on MRC’s initial investment. In total, the assets span 64,561 net sellable square feet, including 43 parking spaces. The sale was completed by a debtor in Chapter 11 bankruptcy pursuant to a plan of reorganization. MRC was a secured creditor in the bankruptcy proceedings.
MRC took control of the Breakers in December 2012 through the acquisition of a non-performing loan, after the original lender began foreclosure proceedings and the borrower filed for Chapter 11 bankruptcy status.
“We’re particularly proud to announce the disposition of the Breakers at Sheepshead Bay property,” says Josh Zegen, co-founder and managing member of MRC. “We had the opportunity in this complex deal to exercise every element of our fully integrated platform. Our bankruptcy and restructuring expertise was at the forefront, given that we entered the deal after the borrower filed Chapter 11. We navigated the challenges of acquiring the defaulted loan and then improving and renovating this property to maximize its value, all within the bankruptcy framework.”
He adds, “This sale, completed pursuant to a contested and confirmed Chapter 11 plan, is a testament to MRC’s ability to bring multi-dimensional real estate and financial expertise to bear on a troubled asset and successfully turn it around.”