Madison Realty flips condo after four months for $13M gain

Sells failed condominium conversion at 45 John Street to investor Chaim Miller

TRD New York /
Mar.March 12, 2014 08:05 AM

Madison Realty Capital flipped a building at the center of a botched condominium conversion yesterday, picking up a $13 million profit in the process.

The property, holding 84 incomplete and unsold units, at 45 John Street in Downtown Manhattan had been in default for about five years. Madison Realty Capital bought it out for $47 million in November, then unloaded it for $60 million four months later. Investor Chaim Miller and his partners acquired the property after Madison Realty lent them a $45 million short-term bridge loan.

“We were able to realize a quick gain and at the same time place a nice bridge loan that will earn us significant returns as well,” Madison Realty co-founder Josh Zegen told Crain’s.

Back in 2009, buyers were told they could rescind their contracts after the lender, Bayerische Landesbank, filed suit to foreclose on $51.7 million in defaulted loans at the condo conversion, as The Real Deal reported. [Crain’s]Mark Maurer

Related Articles

Madison Realty Capital's Josh Zegen and the Broadway Triangle (Credit: Google Maps)

Abraham Brach, Parkview Management land $50M loan for Williamsburg condo project

Tishman Speyer's Rob Speyer and Madison Realty Capital's Josh Zegen with 520 Madison Avenue (Credit: Google Maps)

Madison Realty Capital moves HQ to
520 Madison Avenue

Madison Realty Capital closes $1B debt fund

Yoel Goldman gets his Rheingold Brewery funds. But at a far greater cost.

HAP lines up $53M construction loan for Washington Heights project

Fortis secures $92M financing for Dumbo condo project

A Russian oligarch’s guide: How to hide $20M in a NYC skyscraper

Photos: Madison Realty Capital’s 2018 holiday bash