Suspended Astoria rentals get going with cash infusion

TRD New York /
Sep.September 12, 2013 12:56 PM

A 28-unit unit rental building in Astoria delayed by a neighborhood rezoning will finally be completed, now that the developer has received a construction loan from Madison Realty Capital, principals of the commercial real estate investment firm told The Real Deal.

The seven-story, 25,000-square-foot building at 28-18 Astoria Boulevard will be comprised of only one-bedroom units and will have 2,289 square feet of retail space and a 1,189-square-foot community facility. It is being developed by local Queens developer Charalabos Bakalis.

Industry pros said there has been a major uptick in interest in Queens rentals in recent months as spiking Brooklyn and Manhattan rents have forced out tenants.

Balakis purchased the site for $2.86 million in 2007, public records show, and filed plans for the new building shortly after. He started the project in 2008 but construction stalled when a 2010 rezoning of 238 blocks in Astoria rendered the project unlawful.

The developer needed approvals from the Board of Standards & Appeals to continue with the project as it was originally conceived. The BSA only recently signed off on the approvals, according to Bryan Rubin, a vice president at Madison.

The new building already has a foundation and a steel frame in place. Completion of the project is expected within the next 12 to 18 months, Rubin said.

Madison provided a $7.5 million construction loan, which will be used to retire some outstanding debt on the property as well as fund the remaining construction. Bakalis could not immediately be reached for comment.


Related Articles

arrow_forward_ios
Ilan Bracha, Haim Binstock and 39 East 72nd Street (Getty, Elliman)

Vanderbilt mansion condo conversion in foreclosure

Vanderbilt mansion condo conversion in foreclosure
Mortgage lenders are beginning to see missed rent payments from office buildings. (Credit: iStock)

Add office tenants to the list of those not paying rent

Add office tenants to the list of those not paying rent
Brian Harris, CEO of Ladder Capital (Credit: iStock)

“What, me worry?” Ladder Capital says it can easily meet margin calls

“What, me worry?” Ladder Capital says it can easily meet margin calls
Ladder Capital's Brian Harris and Madison Realty Capital's Josh Zegen (Credit: Ladder Capital; Madison Realty Capital)

Ladder Capital deals loan portfolio to Madison Realty Capital amid mortgage selloff

Ladder Capital deals loan portfolio to Madison Realty Capital amid mortgage selloff
Madison makes $157M loan on Santa Monica rental projects

Madison makes $157M loan on Santa Monica rental projects

Madison makes $157M loan on Santa Monica rental projects
From left: Raphael Toledano and Madison Realty Capital managing principals Adam Tantleff, Josh Zegen and Brian Shatz (Illustration by Kevin Rebong for The Real Deal)

Raphael Toledano’s “ghostly” East Village portfolio

Raphael Toledano’s “ghostly” East Village portfolio
Union Crossing at 825 East 141st Street with The Bluestone Group's Eli Tabak and Madison Realty Capital's Josh Zegen (Credit: Union Crossing Bronx)

South Bronx office building lands $85M refi

South Bronx office building lands $85M refi
Brian Shatz and Josh Zegen of Madison Realty Capital (Credit: Angela Pham @BFA)

Madison Realty Capital throws merry bash

Madison Realty Capital throws merry bash
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...