Madison Realty Takes Control of HAP’s 4452 Broadway for $27M Via Bankruptcy Sale
By Isabelle Durso September 11, 2024 6:10 pm
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Lender Madison Realty Capital has purchased HAP Investment Developers’ 4452 Broadway near the northern tip of Manhattan for $26.5 million through a bankruptcy sale, according to city records made public Wednesday.
Madison Realty closed the deal through the entity 4452 Broadway Owner with Chief Financial Officer Urian Yap listed as the signatory for the buyer, while HAP completed the sale through the entity 4452 Broadway Mazal with CEO Eran Polack listed as the seller’s signatory, property records show.
Spokespeople for Madison Realty and HAP did not immediately respond to requests for comment.
HAP bought the Washington Heights site on Broadway near West 190th Street in 2013 for $7.3 million and had visions for a seven-story building with 129 apartments and 11,000 square feet of retail space, The Real Deal reported. In 2015, the developer filed plans for a more ambitious, 241-unit building, but locals opposed the proposal because of its height.
Then in 2019, lender Madison Realty provided a $52.5 million loan on the project to cover its piled debt and construction costs, TRD reported.
Construction on the building stalled in 2022, forcing Polack to file a bankruptcy petition in November to protect the project, listing assets and liabilities between $10 million and $50 million, PincusCo reported at the time.
Hilco Real Estate announced that 4452 Broadway was up for bankruptcy sale in February, when the building was valued at $56 million and 50 percent complete. Bids on the property were due in March.
The buyer would not be required to finish HAP’s 134,000-square-foot project, but Hilco’s Jamie Cote told Crain’s New York Business that route would likely be the best option.
“If they start it over, they may need some new kind of approvals,” Cote told Crain’s at the time. “There’s value in the construction that’s been done.”
A spokesperson for Hilco declined comment.
This isn’t the first time Madison Realty has bought a bankrupt property after once being a lender. In February, outer borough developer Jeffrey Wu handed off 41-60 Main Street in Queens to the lender for $80 million, Commercial Observer previously reported.
Isabelle Durso can be reached at idurso@commercialobserver.com.
