NEW YORK CITY—Scoring a win for its value-add investmentstrategy, Madison Realty Capital has sold a multifamily tower onthe Upper West Side for more than double its purchase price,GlobeSt.com has learned EXCLUSIVELY. The valuespike came after a renovation that also allowed the firm totransact on the property well ahead of schedule. Both the buyer,who was undisclosed, and the seller were represented by JoshGoldflam of Highcap Group.

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Initially bought by Madison Realty for just over $7 million inan off-market transaction during 2012, the firm sold 150 W.84th St. for $12.3 million. Additionally, the companyexpected to hold onto the asset for up to five years but insteadput it on the market two years after the acquisition.

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The firm has been renovating and repositioning the property forthe past two years. That effort has paid off, Josh Zegen,co-founder and managing principal, tells GlobeSt.com. “We feltstrongly that our aggressive renovation plans would enhance thelong-term value of this property."

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He continues, “Our intention is always to maximize the value ofany property investment we make, so we were pleased to close thissale after our renovation and repositioning plans were completed.Our initial goal was to have this property sold in five years, sowe were equally pleased to have completed the sale in two years,way ahead of schedule.”

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Long term, he says, "Our strategy is to seek out other value-addinvestment opportunities throughout New York City and other marketsthat meet our strict investment criteria.”

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The property upgrade also brought Madison another benefit, Zegensays. “Because of the quality of our renovations and layouts, wewere able to achieve better rents than comparable product in thisneighborhood.”

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Rayna Katz

Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.