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
Jackpot: Cannabis REIT has $120M in capital to lend to operators

Jackpot: Cannabis REIT has $120M in capital to lend to operators

Jackpot: Cannabis REIT has $120M in capital to lend to operators
Ilan Bracha, Haim Binstock and 39 East 72nd Street (Getty, Elliman)

Vanderbilt mansion condo conversion in foreclosure

Vanderbilt mansion condo conversion in foreclosure
Rich Barton, Howard Lorber, Jay Hennick, Brett White

Real estate firms are raising billions in debt and equity. Here’s why

Real estate firms are raising billions in debt and equity. Here’s why
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
Cyril Berdugo and Tom Petit (Credit: Landis)

Proptech startup Landis inks deal to turn renters into buyers

Proptech startup Landis inks deal to turn renters into buyers
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
arrow_forward_ios

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

Loading...