The Real Deal New York

Madison Realty shells out $40M for Turtle Bay apartments

Firm making flurry of trades in mid-sized market
By Hiten Samtani | July 23, 2014 08:00AM

Madison Realty Capital closed on a six-story residential building in Midtown East’s Turtle Bay neighborhood for $40.2 million, The Real Deal has learned.

The real estate investment firm is trading properties at a furious pace — this deal comes just days after Madison announced a $30 million acquisition and a $23.4 million sale, both in Harlem.

The 55,500-square-foot property is located at 361 East 50th Street, and has 43 residential units, seven commercial units and 150 feet of frontage along East 50th Street. It also comes with more than 45,000 square feet of unused air rights. Aaron Jungreis of Rosewood Realty Group represented both Madison and the seller, listed in city records as Matthew Siler, in the off-market-deal.

Madison’s co-founder Josh Zegen cited Turtle Bay’s growing trendiness – developers including Ziel Feldman’s HFZ Capital Group are doing projects in the neighborhood – and said that the elevator building has “considerable repositioning potential.”

Madison plans to renovate several of the residential units, which range from studios to a five-bedroom penthouse, and position them as high-end apartments.