Madison Realty Capital Originates $177.5 Million Loan for 451-Unit Multifamily Development in Boston

Madison Realty Capital, a vertically integrated real estate private equity firm focused on debt and equity investment strategies, today announced that it has originated a $177.5 million loan to Scape, an owner, developer, and operator of multifamily and student housing globally, for a 415-unit multifamily property located at 1252-1270 Boylston Street in the Fenway neighborhood of Boston. The loan, originated through Madison Realty Capital’s income-oriented debt investment vehicle, will be used to retire a $165 million construction loan provided by Madison Realty Capital in November 2020 as well as to fund interest and carry costs associated with the stabilization of the property. Since commencing leasing in December 2022, the property’s residences have been leased up to 95% occupancy and its retail space is currently 80% leased.

“As a flexible alternative to traditional bank lenders, we are pleased to continue serving as a single source of financing for Scape through the next phase of development, and expand upon our presence in Boston,” said Josh Zegen, Managing Principal and Co-Founder of Madison Realty Capital. “The transaction demonstrates our proven ability to provide lower cost of capital solutions throughout multiple stages of development with our transitional lending and lender financing platforms. Fenway is a premier academic and employment hub within Boston with substantial demand for efficiently designed, value-oriented luxury rental options from a growing population, and we are proud to support a substantially leased high-quality residential and retail offering in an attractive market.”

The state-of-the-art property includes a unit mix of furnished studios and one- and two-bedroom apartments, as well as class-A retail space on the ground floor leased to quality tenants including a global bank, Immersive Gamebox, Carbon Health, Dave’s Hot Chicken, and Halal Guys. The property also offers luxury amenities including a landscaped terrace, fitness center, yoga room, co-working space, lounge library, and study, and is conveniently located near prominent academic and medical institutions including Boston University and Northeastern University as well as Fenway’s rapidly growing biotech and life sciences industries.

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