Morgenstern Capital and TLM Equities have nabbed a $65 million loan from Square Mile Capital Management for Madison Park Tower—a 36-story, 110-unit multifamily property located in Manhattan’s Murray Hill neighborhood, according to an announcement from the lender.
Madison Park Tower is a 106,000-square-foot, 94 percent-leased building located at 47 East 34th Street between Madison and Park Avenues. It includes 2,950 square feet of ground-level retail with 28 feet of frontage along East 34th Street.
The debt will be used to fund the partnership’s acquisition of the property from CIM Group, as well as building capital improvements and unit renovation costs.
“This transaction gives us the opportunity to provide financing at a secure basis backed by a high-quality, well-occupied asset, while also establishing a lending relationship with a premier team in Morgenstern Capital and TLM Equities,” Square Mile Vice President Sean Reimer said in prepared remarks. “Given the borrowers’ track record, the building’s desirable location and the strong multifamily market fundamentals in Manhattan, we are confident in ownership’s ability to execute its business plan and enhance the asset’s status as a high-quality property in the Murray Hill neighborhood.”
As previously reported by The Real Deal, Esplanade Capital developed the property as an extended-stay hotel in 2009 before allegedly defaulting on $76 million in loans on the property. A year later, CIM acquired the building in a foreclosure sale for $54 million.
Cushman & Wakefield‘s Steve Kohn, Gideon Gil, Dave Karson, Alex Hernandez, Chris Moyer and Alex Lapidus represented the borrower, while the brokerage’s Adam Spies, Doug Harmon, Adam Doneger, Kevin Donner and Avery Silverstein represented the seller in the acquisition.
“We had a tremendous market response to this financing effort,” Gil said, in prepared remarks. “Square Mile was able to work with our clients to provide a truly customized solution for this acquisition and its business plan.”
“We are thrilled to have purchased an asset of this quality at such an attractive basis. Incredibly attractive financing with a firm like Square Mile is icing on the cake,” Robert Morgenstern, the managing principal of Morgenstern Capital, said. “We appreciate Cushman & Wakefield’s assistance in helping to secure the debt. We look forward to implementing our capital improvement plan and a period of successful long-term ownership.”
Update: This story was edited to include comments from C&W and Morgenstern Capital.