NEW YORK CITY—Madison Realty Capital has been busy. On Tuesdaythe firm acquired two five-story mixed-use elevator buildings inHarlem while, just the day before, it sold a portfolio of severalbuildings uptown.

|

Madison Realty bought 2053 Frederick Douglass Blvd. and 300 W.112th St., in partnership with RWN Real Estate Partners LLC, for$30 million in an off-market transaction. Together, the twoadjacent buildings, situated between 111th and 112th streets,comprise 55,000 square feet. The properties include 50 residentialunits and two retail units totaling approximately 3,750 squarefeet, as well as 30,000 square feet of additional residentialdevelopment rights.

|

Meanwhile, MRC has sold a portfolio comprised of 528-538 W.159th St., 220 W. 149th St. and 2546-2548 7th Ave, to anundisclosed foreign buyer for $23.4 million. The portfoliocollectively includes 125 apartment units and two retailstores.

|

On the former deal, NGKF Capital Markets—led by Steven Schultzand Josh Malka—represented both parties in both off-markettransactions. On the latter transaction, Yosef Katz and Roni Abudifrom GFI Realty Services and Peter Von Der Ahe from MarcusMillichap closed the deal.

|

MRC and RWN will seek to add value to both 2053 FrederickDouglass Blvd. and 300 W.112th St. through therenovation of existing apartments to maximize rents, lease-up ofvacant units and the potential future development of the unuseddevelopment rights. Just one block north, MRC acquired 2094-2104Frederick Douglass Blvd. earlier this year. That property,which MRC purchased for $7.25 million, is an 11,254 square-footretail condominium unit within the Gateway Tower luxury residentialcondominium development. The property is currently occupiedby several long-term tenants, and offers strong in-place cash flowas well as significant upside potential.

|

“Frederick Douglass Boulevard has seen tremendous growth andrevitalization over the past several years,” says Josh Zegen,co-founder and managing principal of MRC. “Redevelopment andexpansion of the residential stock, combined with the growth of anappealing mix of restaurants and retail, has transformed theneighborhood. The area has seen an influx of families and youngprofessionals seeking alternatives to the Upper West Side.”

|

Adds Ari Shalam, managing principal of RWN, “Given thosedynamics, we see considerable untapped demand for high-qualityresidential projects on Frederick Douglass Boulevard, particularlyat the southern end near Central Park. “The properties we acquiredhave significant unused development rights, which provide theopportunity for further residential development. The retailmarket in this neighborhood is also seeing stronggrowth.”

|

The uptown portfolio being sold was purchased by MRC for $10.5million in December 2012. Over the past two years, thecompany says it executed an aggressive business plan for eachproperty, which included renovating and maximizing the apartmentunit layouts, enhancing the rent roll and leasing the retailportion.

|

“This sale illustrates our ability to once again maximize aproperty's value and generate investor interest by employing ourvertically integrated platform," says Zegen. “Ourcomprehensive asset management capabilities enabled us to transformthese properties quickly and enhance their appeal. Notsurprisingly, demand was significant for the portfolio when we putit on the market and we were able to secure a deal that was a'win-win' for both MRC and the buyer.”

|

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

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.