Josh Zegen, co-founder and managing principal of Madison Realty Capital

NEW YORK CITY— Madison Realty Capital announced it has provided a $50 million first mortgage loan collateralized by a condominium development at 58 Gerry St., an office building at 68 Gerry St., and an additional development site at 25 and 33 Bartlett St. The properties are in the Broadway Triangle neighborhood of Brooklyn.

Abraham Brach and Parkview Management are the borrowers developing the properties, according to industry sources.

The development, situated on a 30,037-square-foot lot, includes a nearly 80% complete condominium project comprising two adjacent seven-story buildings and ground-floor retail, a completed 7,470-square-foot office building, and a vacant residential development site.

Abraham Brach first acquired the property in December 2016. The financing will be used to retire the existing debt on the development, complete construction of the condominium project, and cover transaction costs.

“MRC's lending expertise and familiarity with the specific needs of this repeat borrower allowed us to design a customized funding package within a compact timeframe,” says Josh Zegen, co-founder and managing principal of Madison Realty Capital. “In this case, MRC was able to capitalize on the opportunity to originate a loan for a well-located, high-quality condo development with additional liquid assets including a boutique office building and buildable lot, as well as a healthy last dollar exposure. The development's structurally complete buildings and limited cost/schedule overrun risk made this an even more attractive project for us to finance.”

Upon completion scheduled for Q4 2019, the condominium will include 41 residential units totaling 80,117 square feet, 12,625 square feet of retail space across the ground and cellar levels, and 21 parking spaces. The property also includes a 10,000-square-foot vacant lot directly north of the completed office building at 66 Gerry St., offering the potential for an additional affordable housing project.

So far, in constructing the condominium, the foundation, superstructure and exterior framing have been completed.

Instant Insights /

Abraham Brach Receives $50M Loan to Develop Brooklyn Properties

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