Madison Realty Capital Facing Pre-Foreclosure at Eight NYC Residential Buildings
The debt was part of a $5.8 billion package of former Signature Bank loans
By Isabelle Durso March 5, 2025 5:24 pm
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Madison Realty Capital has been hit with six separate pre-foreclosure actions after a trio of lenders alleged the private equity firm defaulted on a total of $76 million in debt at eight residential buildings in Manhattan and Brooklyn, according to court filings.
The three lenders — the Community Preservation Corporation (CPC), Neighborhood Restore and Related Fund Management — acquired Madison Realty’s debt on the buildings after it bought a $5.8 billion package of former Signature Bank loans in 2023 comprising “significant numbers” of rent-stabilized apartments, according to PincusCo, which first reported news of the foreclosures.
The lender group claimed borrower Madison Realty was in default on loans at eight buildings tied to the now-defunct Signature Bank: a $33 million loan at 361 East 50th Street; a $15.5 million loan at 216 and 218 West 22nd Street; a $9.9 million loan at 440 and 442 10th Avenue; a $6.75 million loan at 17 Bleecker Street; a $5 million loan at 222 East 27th Street; and a $5.9 million loan in Brooklyn at 1419 Eighth Avenue.
Madison Realty declined to comment, while spokespeople for CPC, Neighborhood Restore and Related did not immediately respond to requests for comment.
Madison Realty paid $40 million for the largest property part of the package, the 44-unit 361 East 50th Street in Turtle Bay, where the borrower allegedly hasn’t made a payment on its $33 million loan since November 2023, according to the filing.
Community Stabilization Partners (CSP), an affiliate of the lenders that filed the foreclosure actions, said in a statement to Bisnow that CSP is “exercising our legal remedies including foreclosure against a subset of unresponsive and uncooperative borrowers.”
CSP is seeking to sell the buildings after serving Madison Realty with notices of default for the properties in October, according to the filing.
“This is part of our larger effort to preserve affordability and improve the overall physical and financial health of the properties in the portfolio,” CSP said to Bisnow.
Isabelle Durso can be reached at idurso@commercialobserver.com.
