Madison Realty Capital Lends $24M on Soho Mixed-Use Property
By Cathy Cunningham September 18, 2019 12:58 pmreprints
Madison Realty Capital has provided a $23.7 million loan to refinance 54 Thompson Street, a seven-story mixed-use building in Soho, Commercial Observer has learned.
In addition to taking out existing debt, loan proceeds will be used to fund tenant improvements and leasing costs at the property, which sits between Spring and Broome Streets and was formerly a publishing warehouse.
The 28,164-square-foot building is now fully leased. Flex office firm Breather recently inked a deal for 12,777 square feet on the building’s fourth and fifth floors, and part of the proceeds will be dedicated to completing the buildout of its new offices. The lease was signed in June, sources external to the deal confirmed, and the firm is expected to take occupancy in November.
Additional tenants include Cheshire Films, a branding studio that develops campaigns for luxury brands; Thompson Studios, a multi-room recording complex; and Visualhouse USA, a creative agency focused on creating brand stories for architecture and design. Mediterranean restaurant Pera occupies the ground floor.
“This financing opportunity was very attractive given the asset’s desirable Soho location, a new lease with Breather that brings the building to full occupancy, and the property’s high-quality retail space featuring a rare walled outdoor space,” Josh Zegen, co-founder and managing principal of Madison Realty Capital, said in prepared remarks. “We believe the borrower’s business plan will take advantage of the steady stream of investment flowing into the Soho neighborhood, as well as its strong residential and office markets, to create significant upside and success over the long-term.”
The 2,145-square-foot residential unit on the sixth floor and the residential condominium on the seventh floor are not included in the loan collateral.