Madison Realty Capital debt fund raises $695M

Lending fund exceeds $600M goal, will originate mortgages loans and mezz debt

TRD New York /
May.May 10, 2016 12:30 PM

Madison Realty Capital closed off its latest debt fund after raising $695 million – “substantially exceeding” an initial goal of $600 million, the real estate investment and lending firm said Tuesday.

The fund, Madison Realty Capital Debt Fund III LP, is the firm’s third institutional debt vehicle and raised money from “a diverse group of investors” including public and corporate pension funds, foundations and endowments, and asset managers.

MadisonTRData LogoTINY closed the $695 million fund after “surpassing our initial [$600 million] target by a considerable margin,” company managing principal Adam Tantleff said in a statement.

The debt fund originates commercial mortgage loans, mezzanine loans and preferred equity interests while also acquiring “non-performing mortgages,” Madison said, and has “more than $2.5 billion of transaction capabilities.”

Madison’s first debt fund, launched in 2005, raised more than $300 million, and was followed by the Sullivan Debt Fund in 2012, which raised more than $350 million.

The firm’s total assets “now approach $3 billion,” Tantleff added, with Madison looking to “find and exploit” investment opportunities “in the underserved middle markets across asset classes.”

Madison recently entered contract on a pair of vacant warehouses, near the Industry City office complex in Sunset Park, for $37 million. The company also teamed with USAA Real Estate Co. in March to acquire a 16-story Midtown East rental building for $270 million. – Rey Mashayekhi


Related Articles

arrow_forward_ios
State Senator Julia Salazar and Assemblymember Harvey Epstein (Credit: Getty Images)

Pols take aim at private equity with new plan to tax mezz debt

The bank is accused of systematically trying to foreclose on mortgages after the state’s six-year statute of limitations had passed. (Credit: iStock)

BNY Mellon faces suit over foreclosures from the housing crash

147-07 94th Avenue in Jamaica and Pheonix Realty Group president Keith Rosenthal (Credit: Google Maps)

Phoenix Realty, Artimus snag $181M loan for Jamaica resi project

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

King Street Properties’ Rob Albro, Eric Gural and 45-18 Court Square in Queens (Credit: GFP Real Estate, King Street Properties, and LoopNet)

GFP partnership lands $156M loan to build LIC biotech center

Brian Shatz and Josh Zegen of Madison Realty Capital (Credit: Angela Pham @BFA)

Madison Realty Capital throws merry bash

14-16 Fifth Avenue along Madison Square Park and Madison Realty Capital's Josh Zegen (Credit: Google Maps)

Madison Realty Capital planning condo by Washington Square Park

Rendering of the Staybridge Suites at 38-59 11th Street

Long Island City hotel project moves forward with construction loan

arrow_forward_ios
Loading...