NEW YORK CITY—Madison Realty Capital, an institutionally-backed real estate investment firm, has provided a $40 million first mortgage loan collateralized by three adjacent mid-block lots located at 215, 217 and 219 West 28th Street in the Chelsea neighborhood of Manhattan.
The property consists of three contiguous lots at 215, 217, and 219 West 28th Street and includes additional air rights from two adjacent properties. The site offers 75 feet of frontage along West 28th Street and extends 100 feet to the north towards West 29th Street. Combined, the site allows for an as-of-right development totaling approximately 93,000 square feet. In addition, the borrower can take advantage of an inclusionary housing bonus to expand the property to a total FAR of 12.0.
The transaction demonstrates MRC's ability to identify value in off-market transactions and provide certainty of execution, the firm says. With the underlying mortgage set to mature, the borrower required a time of the essence closing in order to refinance the existing debt and secure additional time to complete the pre-development phase of the project.
“Our established reputation as a lender that delivers on time-sensitive deals was the key factor in securing this opportunity,” says Josh Zegen, co-founder and managing principal of MRC. “The deal came to us through Andrew Skydell and Kyle Stein of Prince Realty Advisors who were well aware of MRC's ability to evaluate an asset and close quickly in transactions such as this, where time is of the essence. Chelsea continues to be one of the most desirable markets in Manhattan as developers look to address the area's current supply limitations, particularly for residential. This property has significant potential for the borrower with its great location as well as the additional benefit of the surrounding air-rights.”
The asset is located in the heart of the Chelsea neighborhood, just steps away from the popular Chelsea Gallery District, which features hundreds of local art galleries and artist studios, as well as retail stores and restaurants. Developers have been drawn to the area in hopes of alleviating current supply constraints with new high end residential condominium buildings.
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David Phillips
David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.
