Madison Capital Refinances 1657 Broadway
The real estate investment firm received an $80 million loan secured by the Times Square property.
NEW YORK CITY—Madison Capital has recently refinanced its Times Square District office and retail building at 1657 Broadway. The real estate investment firm received a 10-year, $80 million, 4.8% interest-only loan from Aareal Capital Corporation. The loan will be used for expiring debt with investments in other property.
In addition to the loan, Madison signed two 10-year leases with the fast-food franchise McDonald’s renting 7,547 square feet and the ubiquitous coffee company Starbucks renting approximately 2,330 square feet. On Broadway, between W. 51st and W. 52nd streets, the building is near the Theater District and Times Square. With other tenants including Duane Reade and Times Square Church, the property is 100% leased.
Madison negotiated the lease directly with McDonald’s. For the other lease, Madison and Jeff Winick of Winick Realty represented the landlord, and David Firestein of The Shopping Center Group represented Starbucks.
“These two leases at strong market rents represent the vibrancy of the Times Square North market and the exceptional location of this property,” says Joe Jacobson, partner at Madison Capital. “We are very pleased with the refinancing of this asset and look forward to owning it for another 10 more years.”
In September 2006, Madison purchased the 95,086 square-foot building that was constructed in 1929 for $60.1 million, according to Real Capital Analytics.