Madison Realty Capital
Update
05/17/21
Madison Realty Capital Wraps Up A Busy April with $395M Loan for NJ Portfolio
April was a busy month for Madison Realty Capital, a fully integrated real estate private equity firm focused on debt and equity investment strategies, with numerous deals closed across the country including three over $100M. Most recently MRC provided a $395 million loan to Accurate Builders & Developers for a portfolio of assets that includes three nearly-complete multifamily properties located in Bayonne, Raritan and Linden, NJ that includes 1,161 units nearing completion and an eight-acre development located at the site of the Former Bears Stadium in Newark, NJ, that includes plans to develop 4,200 residential units. “This transaction reflects Madison Realty Capital’s ability to provide a complex, hybrid financing solution to a high-quality borrower across price points and all stages of the project lifecycle, from land acquisition, ground up development and leasing,” said Josh Zegen, Managing Principal and Co-Founder of Madison Realty Capital. “We are thrilled to expand our relationship with Jack Klugmann of Accurate Builders & Developers and to work with the Town of Newark on this exciting, once-in-a-generation project that benefits the economic revitalization of downtown and will bring much needed high quality housing options to Newark’s hard-working residents. Bayonne, Raritan and Linden are attractive, transit-oriented locations with growing demand for high-quality rental housing options.”
The Crossings at Raritan
Earlier in April, The Madison team originated a $145.7 million construction loan also to Accurate Builders & Developers for two multifamily projects in New Jersey The projects include a 325-unit multifamily project located at 100-120 Cherry Hill Road in Parsippany, New Jersey, and a 220-unit multifamily property with an adjacent 60 townhomes located at 180-181 Mountainview Boulevard in Basking Ridge, New Jersey. “We are pleased to provide an efficient, bespoke financing solution to support the construction of Class-A, highly-amenitized residential properties in attractive, high barrier to entry New Jersey markets,” said Josh Zegen, Managing Principal and Co-Founder of Madison Realty Capital. “Accurate Builders is a prolific New Jersey commercial real estate developer with a strong development pipeline of more than 2,000 residential units and 800,000 commercial square feet across New Jersey, and we look forward to further expanding our relationship with a repeat borrower.”
The loan will be used to finance the acquisition and fund construction of the Parsippany site, known as The Morrison and the Basking Ridge property named, The Mountainview, both of which were acquired in 2020 and are fully approved to break ground. The Morrison will consist of two residential buildings with studios, one-, two- and three-bedroom apartments and include a garage, courtyard, pool and recreation space. Spanning 76 acres, The Mountainview will offer studios, one-, two- and three-bedroom apartments and three-bedroom townhome units which will include a garage. Residents of The Mountainview apartments and townhomes will have access to high-quality amenities including a clubhouse, outdoor pool, fitness center, event room, lounge and game room.
The Morrison in Parsippany, NJ
On the West Coast, MRC provided a $110 million loan to a JV between Harridge Development, Silverpeak Real Estate Partners, and an affiliate of Cerberus Capital Management for single-family home lots located in San Pedro, California. The majority of the lots in the master-planned gated San Pedro community have been sold or are in contract with home developers. The sponsorship group purchased the lots in 2018 and subsequently completed the horizontal development of infrastructure and roads to prepare the site to be sold to national home builders. “We are pleased to provide an attractive, flexible financing solution to an institutional sponsorship group to support the final stages of the development of much needed, high-quality, and well-priced housing for San Pedro, a historic neighborhood less than 20 miles south of Downtown Los Angeles,” said Josh Zegen, Managing Principal and Co-Founder of Madison Realty Capital. “Madison Realty Capital has deep experience financing residential projects across the country through every stage of development, from construction through lease-up. Moreover, this transaction represents the third project we have financed for Harridge Development, a world-class real estate developer with a strong track record of execution.”
