Developer Gets $55M Construction Loan For Mixed-Use Bed-Stuy Project
Madison Realty Capital provides financing for the three-building complex.
NEW YORK CITY—The developer of a 214,000 square-foot, mixed-use project to be built at 936 Myrtle Ave., 948 Myrtle Ave. and 258-264 Throop Ave., received a $55 million first mortgage loan from Madison Realty Capital. Although the developer’s name was not disclosed, a source close to the transaction tells GlobeSt.com that the borrower is Isaac Schwartz. Real Capital Analytics lists the owner in this transaction as Cornell Realty Management.
The Madison Realty loan will cover construction and will refinance the existing debt and cover additional transaction costs. It is collateralized by the 948 Myrtle Ave. development site in the Bedford Stuyvesant neighborhood of Brooklyn.
The developer plans to build a 214,487 square-foot structure that connects three buildings, having rental and condominium units, ground-floor retail and parking. The 30,000 square-foot lot will have 500 feet of frontage along three sides. All demolition, site excavation and foundation work is finished and the developer intends to complete construction in the next two years.
Madison Realty notes it previously provided a $15 million bridge loan to the borrower for the project in late 2017, and the borrower acquired the property in December 2014. Commercial Observer had reported the borrower for that loan was Cornell Realty. Real Capital Analytics also notes the land sale at the 948 Myrtle Ave. property for $16.5 million in December 2014, listing Cornell Realty as the owner.
“We’re pleased to once again deliver financing to this quality sponsor and eager to see the completion of this development, which will bring much needed new residential and retail offerings to the Bedford Stuyvesant neighborhood,” says Josh Zegen, co-founder and managing principal at Madison Realty.
The first two buildings of the development will be nine stories, comprising 77 residential condominium units across 118,746 square feet. These structures will also have 20,300 square feet of ground-floor retail, and 59 underground parking spaces. The five-story third building will include 24 affordable residential rental units, regulated under New York City’s Department of Housing Preservation and Development’s housing inclusionary program. It will have five studio-, seven one-bedroom-, and 12 two-bedroom units spanning 26,369 square feet. The developer is also seeking zoning and financial incentives available for creating grocery stores in underserved communities.