Madison Realty Capital (MRC), an institutionally-backed real estate investment firm focused on real estate equity and debt investments in the middle markets, provided a $30 million first mortgage loan to finance the redevelopment of 39 East 72nd Street, a 13,310 square feet, five-story townhouse located in the Upper East Side neighborhood of Manhattan, New York.
The borrower purchased the landmarked property, also known as the Vanderbilt Mansion, in April 2014 for $19 million, financed by a previous loan through MRC. With the new financing in place, the borrower intends to retire the existing loan and complete construction to convert the property into a new seven-story, 18,412 square-foot townhouse with 3 residential condominium units.
The property, which was partially occupied at the time of the borrower’s original purchase, has since been vacated and approved for redevelopment from the Department of Buildings and the Landmarks Preservation Commission. The renovation plans will restore the historic character of the building while modernizing the space to provide finishes typically found in the New York luxury condominium market. Upon completion, the property will have a total of three new residential units featuring private access, high ceilings and outdoor space.
“This is an exciting deal for us to finance,” said Josh Zegen, Co-Founder and Managing Principal of MRC. “The Vanderbilt Mansion is a prominent Manhattan townhouse and the opportunity to reposition such an extraordinary structure in one of the most desirable neighborhoods in the country is rare. The loan we are providing will allow the borrower to maintain the property’s historic features while updating the units with modern finishes. Our familiarity with the borrower and the neighborhood also allowed us to structure a deal that made sense for all involved.”
The 19th century Neo-Greco style property is a mid-block site located on the north side of the street between Madison Avenue and Park Avenue, in what is considered one of the most affluent residential neighborhoods in the country. The neighborhood is famous for its classic architecture, world-class shopping and restaurants, and plays host to a variety of cultural institutions.