Debt & Equity

DUMBO developer closes on $31M finance deal

Madison Realty Capital (MRC) just closed a $21 million first mortgage loan to fund the acquisition of an eight-story office building at 29 Ryerson Street in the Clinton Hill section of Brooklyn.

The firm also issued a conditional commitment for construction financing in the amount of $10 million to the borrower, bringing the total of the transaction to $31 million.

The property is being converted to offices

MRC was able to secure the financing opportunity based on its prior relationship with the borrower and the firm’s ability to execute in a timely fashion. Joshua Zegen, co-founder and managing member of MRC, made the announcement.

The approximately 214,710 s/f property, which was built in 1951, is currently being used as a storage warehouse. The borrower intends to renovate the building into Class A office space and pursue a leasing strategy focusing on tenants seeking attractive office space at more affordable rates than neighboring locations such as DUMBO.

Said Zegen, “The location and long-term strategy for this property has it well-positioned for success and the speedy completion of this deal will allow the borrower to move forward without further delay.”

The eight-story loft building is close to the Brooklyn Navy Yard which has seen a large amount of redevelopment in recent years.

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