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Debt & Equity

MRC funds acquisition loan for new Soho luxury development site

A new high-end apartment building is planned for Soho.

Madison Realty Capital just announced it provided a $23.3 million first mortgage acquisition loan secured by the development site at 182-188 Spring Street in SoHo.

The borrower — identified by The Real Deal as Opal Properties — acquired the site through a bankruptcy auction, and closed simultaneously on the adjacent townhouse at 188 Spring Street, including its air rights. The total cost was $31.565 million.

According to Josh Zegen, Co-Founder and Managing Principal of MRC, Opal plans to build residential units above ground-floor retail space, in a development totaling approximately 37,278 gross square feet.

This site — on the corner of Spring and Thompson Street — is in a market with little to no developable land, very limited condo inventory, and limited new retail boxes.

Zegen said, “We believe this is an incredibly well-located assemblage with great prospects for successful redevelopment into luxury condominiums and class A retail.”

According to Zegen, his firm is seeing an uptick in distress-related financing opportunities. “In this case, we completed a time sensitive financing transaction to facilitate a complex acquisition that combined a bankruptcy auction purchase with a non-distressed acquisition to create an irreplaceable assemblage,” he added.

Existing structures at 182 Spring Street (pictured top) are substantially demolished, and demolition is already complete at 186 Spring Street. 188 Spring Street currently includes a vacant four-story, 2,239 s/f single family townhouse, which is also expected to be demolished.

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