Real Estate Weekly
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Debt & Equity

Developers fund Chetrit condo, hotel buy with $76M MRC loan

Chetrit co-owned the property with Read Property Group.

Madison Realty Capital (MRC) provided a $76 million financing package, that included both an MRC senior loan and additional mezzanine financing from Bluestone Group, to fund the acquisition of a 12-story, 177,966 s/f mixed-use building located at 85 Flatbush Avenue in Downtown Brooklyn.

The recently constructed property includes the boutique Tillary hotel featuring 176 rooms as well as a ballroom, restaurant, and a bar/lounge and an attached 64-unit luxury multifamily building. The property also includes a separate parking garage.

The time-of-the-essence loan allowed repeat MRC borrower, a partnership comprised of developers Isaac Hager and Lipa Rubin, to complete the acquisition and cover all closing costs associated with the transaction.

The property was built in 2016 and is located on the corner of Flatbush Avenue Extension and Tillary Street, just off the base of the Manhattan Bridge near several local attractions, most notably the Barclays Center.

The hotel and residential components have separate designated entrances and function independently with some shared amenities that include a fitness center, boutique cafe, business center, meeting center, multiple roof decks and outdoor space, and parking.

“MRC’s lending expertise and familiarity with the downtown Brooklyn market allowed us to quickly underwrite this transaction for the borrower and deliver on a time-of-the-essence closing schedule,” said Josh Zegen, Co-Founder and Managing Principal of MRC.

“We are pleased to provide the necessary funding for this well-positioned asset that benefits from the neighborhood’s increased residential and commercial development and continued demand for professional services throughout the area.”

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