Madison Realty Capital Provides $297M Construction Loan for Brooklyn Project
Proceeds will be used to retire a $107M bridge loan and complete construction of three residential condo buildings
Fortis Property Group has received a $297 million construction loan from Madison Realty Capital for River Park, a mixed-use project located at the former Long Island College Hospital site, Commercial Observer can first report.
River Park is a three-building development in the Cobble Hill area of Brooklyn. The three adjacent sites were formerly the Long Island College Hospital medical campus. The new development, currently underway, will comprise 325,000 sellable square feet, and include 172 luxury condominium units, 66,900 square feet of community facility space, and 328 parking spaces.
It’s not the first time that Madison Realty Capital and Fortis have transacted. In 2015, Fortis acquired the 18 buildings that comprise the campus from the State University of New York for $240 million, financing the first phase of acquisition with a $107.3 million bridge loan from the lender.
“We are very excited to be working with Fortis again on the completion of these Cobble Hill buildings,” said Josh Zegen, the co-founder and managing principal of Madison Realty Capital, in prepared remarks. “We believe that the limited product in the Cobble Hill and Brooklyn Heights market, combined with the exceptional product Fortis will deliver, will make this a marquis project for Brooklyn.”
The new construction loan proceeds will be used to retire the previous bridge loan and also complete construction of the three residential condominium buildings, including a waterfront tower at 350 Hicks Street (rebranded as 1 River Park); a high-rise condominium tower at 95 Pacific Street (2 River Park) and a contextual condominium building at 349 Henry Street/112 Pacific Street (5 River Park).
“We are excited to proceed with the construction of our beautiful River Park project,” said Jonathan Landau, the chief executive officer of Fortis Property Group. “Working together with Josh Zegen and MRC enabled us to achieve excellent leverage at competitive pricing for this landmark development. River Park 1, 2 and 5 will anchor the new Brooklyn Waterfront District and bring a new level of luxury living to Cobble Hill.”
Madison Realty Capital hasn’t shied away from large construction loans. Just last month it made a $300 million construction loan for Ceruzzi Holdings and SMI USA’s 72-story, 180,000-square-foot residential condo development at 138 50th Street.
Zegen added that the lender continues to be a one-stop shop for real estate financing. “We believe we’re offering a more efficient lending process, based on an understanding of what sponsors need and our deep knowledge of New York City at a micro-market level,” he said.“ In this case we previously provided a loan to Fortis for the first phase of land acquisition and predevelopment, and we’re pleased to remain in the deal as construction lender for this high-profile project.”