MRC Grants $107M Financing for Brooklyn Acquisition

Madison Realty Capital provided $107 million of first mortgage financing for the first phase of the Long Island College Hospital real estate portfolio acquisition in Brooklyn.

Madison Realty Capital provided $107 million of first mortgage financing for the first phase of the Long Island College Hospital real estate portfolio acquisition in Brooklyn. Fortis Property Group purchased the LICH assets.

Josh Zegen, co-founder & managing principal at Madison Realty Capital

Josh Zegen, co-founder & managing principal at Madison Realty Capital

Collateral for the loan is a mix of retail, medical, development sites and townhouse properties previously owned by the Long Island College Hospital. The properties total 357,000 square feet.

Fortis Property Group was represented by David Harte, managing director at Ackman-Ziff, in the transaction. Harte presented the financing opportunity to Madison Realty Capital.

“MRC specializes in delivering funding for complex, time-sensitive middle market transactions, so in many ways we were a natural fit for the LICH deal,” said Josh Zegen, co-founder & managing principal at Madison Realty Capital, in prepared remarks.  “We’ve been active as a lender and investor in Brooklyn for many years now, and our vertically-integrated team has the ability to rapidly assess and underwrite existing properties as well as new development projects. Cobble Hill is one of Brooklyn’s most desirable neighborhoods, and yet properties rarely trade and very few are developed given zoning and landmark restrictions.  These properties are unique in offering as-of-right development potential and have no landmark restrictions, so this deal is particularly exciting for us to play this role in. Our team got up to speed quickly and ultimately closed a great deal.”

This transaction marks the close of 23 debt investments totaling $465 million so far this year for the real estate investment firm.

Photo credits: Chance Yeh