Madison Realty Capital Provides $27M Pre-Development Loan on Upper East Side Condos
By Andrew Coen February 11, 2022 12:34 pm
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Forkosh Development Group has nabbed a $26.5 million debt package for pre-development work on a planned mixed-use luxury condominium project on Manhattan’s Upper East Side, Commercial Observer has learned.
Madison Realty Capital originated the loan for Forkosh’s 36-unit condo development at 305 East 61st Street that will also offer 3,847 square feet of ground-floor retail and 4,333 square feet of mezzanine-level retail. Sam Spinner of Battery Park Group brokered the transaction.
“The condominiums at 305 East 61st Street meet the strong demand for high-end residential projects on the Upper East Side, drawing on the unmatched charm and versatile location of the neighborhood,” Josh Zegen, managing principal and co-founder of Madison Realty Capital, said in a statement. “Forkosh Development Group has over 25 years of experience as a developer, and we are pleased to leverage our expertise investing in Manhattan to provide them with competitive financing.”
The building will include a mix of studios, one-bedrooms and two-bedrooms. Its amenities will feature resident pools, a fitness and yoga center, a lounge and onsite parking.
Manhattan-based Forkosh Development acquired the property last December from Carter Management Corp. for an undisclosed price. Carter had purchased the building in a bankruptcy auction from developer Mitchell Marks for $51 million in September 2020, as CO previously reported. Marks had been in the process of converting the property into condos before the project stalled due to “infighting” and lawsuits among development partners.
The loan for 301 East 61st Street comes on the heels of Madison recently supplying $100 million of construction financing to a joint venture between CBSK Ironstate and Arel Capital for completion of a 13-unit luxury residential property at nearby 1228 Madison Avenue designed by Robert A.M. Stern Architects.
“Madison Realty Capital’s deep familiarity with the Upper East Side and New York City in general made them the right choice to deliver a customized financing solution to our client,” Spinner said in a statement.
Representatives for Forkosh Development did not immediately return a request for comment.
Andrew Coen can be reached at acoen@commercialobserver.com.
