New York—Madison Realty Capital has provided a $63 million first mortgage loan to complete the development of a 193-unit apartment community in Brooklyn’s Crown Heights, Co-Founder & Managing Principal Josh Zegen announced. The 163,598-square-foot building at 564 St. Johns Place is topped off, with framing work already underway on the lower floors.
“Crown Heights is increasingly attractive to many new residents, who are drawn to the close proximity to Prospect Park and reasonable housing prices as compared to Park Slope and Williamsburg,” said Zegen in a statement. “Construction of the building is far along, and we expect the project to be well-received when it hits the market.”
Developer Heritage Equity Partners first acquired the majority stake in 564 St. Johns Place in 2014, in a deal that valued the property at roughly $30 million. MRC provided Heritage with a $23.5 million acquisition loan, Crain’s New York reported at the time. An existing parking garage at the site was razed to make room for the eight-story residential building, which will feature 19 studios, 136 one-bedroom units and 28 two-bedroom units. Residents will also have access to an outdoor recreational area and 87 parking spaces. Construction on the project is slated for completion this fall, according to Yardi Matrix.
It’s been a busy couple of months for MRC in New York. In late July, the real estate private equity firm landed a 63,000-square-foot lease with Urban Soccer at Brooklyn’s Whale Square mixed-use development, and recently provided a $52 million loan for the acquisition of a development site in the East Village.
Rendering courtesy of Karl Fischer Architect