Madison Realty Capital Lends $44M on East Village Student Housing Development
Cathy Cunningham June 23, 2016, 4:50 p.m.
Madison Realty Capital has provided a $44 million loan to Gregg Singer’s Singer Financial Corporation to recapitalize a student housing development at 350 East 10th Street in the East Village, according to property records.
The 110,000-square-foot landmarked property is on a mid-block lot that extends from East Ninth to East 10th Streets between Avenues B and C. The building was constructed in 1906 and operated as an elementary school, P.S. 64, until its closure in the mid-1970s. The borrower first acquired the vacant asset in 1999 and has since been pursuing the entitlement and redevelopment of the property, according to an announcement by MRC. The financing will retire the existing indebtedness and provide capital for pre-development.
“There is a shortage of quality student housing options in Manhattan,” Joshua Zegen, a managing principal and a co-founder of MRC, said in prepared remarks provided to COF. “Our financing of this project will help the borrower tap into that demand and turn a vacant building into a thriving housing option for students residing in New York City. This new development will provide a brand new student living facility with contemporary amenities, right in the heart of the East Village, one of the most artistic and diverse communities in the city.”
The 225-unit building will house 535 students and have various amenities, including a fitness room and outdoor spaces.
Officials at Singer Financial did not return requests for comment.