Brooklyn Development Lands $15M

By Jeff Hamann

Madison Realty Capital has closed on a $15 million bridge loan for a residential and retail development in Brooklyn, N.Y.’s Bedford-Stuyvesant neighborhood. The loan refinances a prior loan of $13 million held by Hudson Capital, taken when developer Cornell Realty Management acquired the site at the end of 2014 in a $16.5 million deal.

“The borrower presented us the opportunity based on our successful previous relationship and our ability to close in a 4-day window,” said Josh Zegen, co-founder & managing principal of MRC, in a prepared statement. “We love to be the borrower’s first call because we have the ability to respond quickly and provide the right solution for the situation. In this case the borrower had a time sensitive deal and we were able to offer both speed and certainty of execution.”

Development Site Plans 

The recently approved three-building project is underway, as the developer proceeds with site and foundation work. Located on three different parcels at 936 Myrtle Ave., 948 Myrtle Ave. and 258-264 Throop Ave., the 154,699-square-foot property will be located two blocks from the G, M, J and Z subway lines and is placed within a two minute walk of several bus routes. The buildings will contain both condominium and rental units.

Initially designed as a single 10-story building in 2015, plans were revised in the following year to shrink the property to seven stories, then to six. The developer has borrowed from MRC in the past to fund previous residential developments.

Before Cornell begins vertical construction, it is awaiting city approvals to permit a higher floor area ratio. Prior to the project, a Key Food supermarket operated on the land. The store closed its doors in 2015 and was later demolished.

In August, Madison Realty Capital provided a $300 million construction loan for completion of a major condo development in Midtown East.