Madison Realty Capital (MRC) provided a $53.50 million acquisition and construction financing package collateralized by a partially-constructed mixed-use development at 208 Delancey Street on the Lower East Side.
The borrower, New Empire Real Estate Development, plans to construct an approved 69-unit residential condo building that will total 85,000 s/f with an additional 10,201 s/f community facility on the site.
MRC funded an initial $15 million at closing to the borrower and has committed to fund an additional $38.50 million to complete construction of the project. The financing package represents 70 percent of the total project cost.
The seller began construction on the site in 2011 and completed excavation, foundation, and superstructure work through the fourth floor, but received a stop work order midway through the project.
With the new MRC financing in place, New Empire was able to acquire the distressed property and intends to demolish the existing structure, repair any structural deficiencies and begin work on the revised new building plans.
“MRC is excited to be a part of this project given the neighborhood’s strong fundamentals and lack of new residential construction at a more affordable price point,” said Josh Zegen, co-founder of MRC. “There is significant development activity that will continue to enhance the area.”