The Real Deal New York

Madison scores $112M loan from Deutsche for Rego Park buy

MRC and partner Arel Capital bought 419-unit rental complex in June for $136M

August 08, 2016 12:20PM
By Rich Bockmann

From left: Josh Zegen and Richard Leibovitch with Saxon Hall at 62-60 99th Street in Rego Park

From left: Josh Zegen and Richard Leibovitch with Saxon Hall at 62-60 99th Street in Rego Park

Deutsche Bank provided $112 million in acquisition financing on Madison Realty Capital and Arel Capital’s $136 million purchase of the huge Saxon Hall apartment complex in Queens’ Rego Park – the largest-ever investment sale in the neighborhood.

Madison Realty Capital TRData LogoTINY co-founder Josh Zegen said, “$96 million of that was funded on Day One,” and the remaining $16 million is available for future improvements on the property.

The $96 million financing includes: $17.2 million in building and project loans; $70.5 million consolidated in existing debt; and an $8.57 million gap mortgage, records filed with the city Monday show.

A representative for the bank was not immediately available for comment.

Madison Realty Capital and Arel closed in June on the $135.5 million purchase of the 419-unit apartment complex at 62-60 99th Street in Queens, as The Real Deal reported.

The seller, New Jersey-based Treetop Development, bought the 16-story, 503,000-square-foot property in 2013 for $85.3 million.

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