NEW YORK, Jan. 25, 2021 (GLOBE NEWSWIRE) -- Madison Realty Capital, a New York City-based real estate private equity firm focused on debt and equity investment strategies, today announced that it has closed a $34 million loan-on-loan financing for a redevelopment project located at 21555 Oxnard Street Woodland Hills, a suburb of Los Angeles, California. The transaction was completed in just three weeks.
The loan provides flexible senior financing to a joint venture comprised of two leading investment firms that purchased a $120 million CMBS loan in maturity default at a significant discount from a special servicer secured by a 347,687 square feet office property. The vacant property was formerly the headquarters of Anthem Blue Cross of California, whose lease expired in December 2019.
Madison’s lender financing enabled the joint venture to restructure the outstanding debt with the underlying property owner, an institutional ownership group with an established track record in similar redevelopments, enabling the full-scale repositioning of the property on an accelerated timetable. Contemporaneously with the restructuring of the underlying loan, the borrower contributed a significant amount of fresh capital further enhancing the collateral position. The property owner has the flexibility to convert the existing building by right into a 14 story, 197-unit modern, multifamily property featuring first-class amenities or redevelop the asset into a modern Class A office project.
“We are pleased to provide a customized financing solution to two leading investment firms and execute the transaction in under three weeks,” said Josh Zegen, Managing Principal and Co-Founder of Madison Realty Capital. “This transaction highlights the flexibility of our new income-oriented $1 billion lending vehicle that enhances our product offering to meet the increasingly diverse needs of borrowers by targeting lighter value-add and core-plus real estate transactions backed by both performing and non-performing loans. We look forward to continuing to identify and execute bespoke loan offerings with varying return profiles to top-tier lenders and borrowers across the country.”
In November 2020, Madison announced a new debt investment strategy focused on income generation with rates of 4% to 7% that provides an even greater variety of options to its deep relationships of real estate owners, operators, and lenders. The strategy seeks to originate and acquire senior loans and mezzanine loans as well as make preferred equity investments backed by a diversified pool of transitional real estate assets. The vehicle also enables Madison Realty Capital to provide other alternative real estate lenders with financing solutions on both a single asset and overall portfolio basis.
About Madison Realty Capital
Madison Realty Capital (MRC) is a New York City based real estate private equity firm focused on debt and equity investment strategies with regional offices in key markets including Los Angeles and Dallas. Founded in 2004, MRC has closed on approximately $13 billion of transactions in the multifamily, retail, office, industrial and hotel sectors. The firm manages investments in the United States on behalf of a global investor base. MRC is a fully integrated firm with over 60 employees across all real estate investment, development, and property management disciplines. Among other industry recognitions, MRC has been named to the Commercial Observer’s prestigious “Power 100” list of New York City real estate players and is consistently cited as one of the industry’s top construction lenders.
