NEW YORK CITY–Madison Realty Capital hasacquired a defaulted $23.5-million note for the luxury waterfrontdevelopment the Breakers at Sheepshead Bay in Brooklyn. A spokesmanfor MRC says that the New York City-based commercial real estatefund and asset management firm bought the non-performing note fromTD Bank.

The note involves the unpaid principal amount on a loan to alocal investment group led by Brooklyn developer Jacob Pinson. Thenote is secured by the remaining 49 unsold units and parking at the75-unit Breakers development at 3112-3144 Emmons Ave. The overallloan purchase price between MRC and TD Bank was not disclosed.

According to Brian Shatz, co-founder andmanaging member of MRC, the project began construction in 2004 andwas completed in 2009. However, the owner filed for bankruptcy inAugust of this year after foreclosure proceedings were initiated.He adds that the transaction was complicated and was completed inthe short period of time required by TD Bank.