Williamsburg Rescue Proves Profitable

Madison Realty Capital rescues and repositions, and a newly built Naples apartment asset proves too tempting to resist.
385 Union Avenue

385 Union Avenue, courtesy Google Maps.

New York—Madison Realty Capital has successfully executed an interesting turnaround play in Brooklyn’s hottest neighborhood with the $37.4 million sale of 385 Union Avenue. The investor picked up the six-story, 47-unit property back in May of 2012. At the time, the property was in foreclosure and under management of a receiver. MRC was about to negotiate the acquisition of debt with the previous lender, the release of all existing subordinate liens and the transfer of the deed for $21.6 million. The Real Deal reports that Sugar Hill Capital bought the vacant asset.

After taking title, MCR landed a final certificate of occupancy, reinstated prior tax abatements and renovated the asset to Class A standards. The recent off-market transaction was arranged by Aaron Jungeries of Rosewood Realty Group.

385 Union Avenue Brooklyn

385 Union Avenue is in Brooklyn’s hip Williamsburg neighborhood. Courtesy Google Maps.

“We’re particularly proud to exit this investment, which exemplifies the benefits of our vertically integrated structure,” said Josh Zegen, co-founder and managing principal of MRC.  “We entered the deal through a distressed acquisition in 2012 and were able to implement an effective strategy which stabilized the asset and maximized value for all parties.”

Newly built Naples apartments prove too tempting to resist

Aster at Lely Resort

Aster at Lely Resort, courtesy Yardi Matrix.

Naples, Fla.—Preferred Apartment Communities has acquired Aster at Lely Resort, a newly-built, 308-unit community in Naples, Fla. While details on the acquisition are sparse, Preferred’s COO Daniel Dupree said the buy helps “continue to lower the average age of our portfolio, which we believe is the lowest in the industry.”

The property was acquired through a wholly-owned subsidiary, and was financed using a first mortgage loan from Prudential.

Community amenities include controlled access, a coffee bar and lounge, a fitness room with yoga studio, swimming pool, cabanas, clubhouse, outdoor media lounge, bark park and barbecue area.