The Real Deal New York

The top outer-borough RE loans in August

Madison Realty Capital was lender of choice on two of the month's top deals, borrower on a third
By Will Parker | September 25, 2017 07:00AM

From left: The Rheingold site, Josh Zegen, John Catsimatidis and The Margo

In the top 10 loans recorded in New York’s outer boroughs last month, one company stands out from the rest: Madison Realty Capital. The private equity shop, with a book of business that’s exploded in recent years, played a part in three of the top deals, lending out a total of $350 million and borrowing another $75 million with one of its partners. With $836 million in deal volume, the biggest loans of August included everything from construction to refinance, and in one case, a milk plant. See the full list below:

1) Tapping the construction keg – $270 million

As All Year Management plows ahead with its massive reimagining of part of the Rheingold Brewery site in Bushwick, it now has a $270 million construction loan from Madison Realty Capital to put to work. The developer plans 911 apartments and more than 20,000 square feet of retail at the new rental complex. All Year will also benefit from the 421a tax exemption.

2) The apple of his eye – $90 million

The Margo, a Fort Greene rental building named for the spouse of developer John Catsimatidis, was financed with a $90 million loan from Bank of America. Catsimatidis’ Red Apple Group launched construction on the building in 2014. Units currently lease for more than $3,300 a month on average.

3) That’s a lot of singles – $89 million

Strip club owner Robert Gans refinanced his 17-building real estate portfolio with an $88 million debt package from Centennial Bank. Gans owns the Penthouse Executive Club in Manhattan and a dozen other commercial buildings in Corona and Astoria in Queens. The refinancing was previously unreported.

4) More Madison – $88 million

In another construction deal, Madison Realty Capital closed on the senior piece of an $88 million loan package with a trio of developers at work on 97-unit condominium project at 104 Stockton Street. The builders, Isaac Deutsch, Abraham Brach and Nachman Leibowitz, are members of Brooklyn’s Satmar Hasidic community.

5) … and some more – $75.1 million

This time as a borrower, Madison Realty Capital and partner Artemis Construction took on $75 million in debt from KKR for their acquisition of two industrial properties in Jamaica, Queens. 184-10 and 184-60 Jamaica Avenue count 613,000 square feet and are approximately 80 percent leased.

6) Picture perfect – $66 Million

Movie studio mogul and developer Doug Steiner borrowed $66 million from M&T Bank for his Brooklyn Navy Yard redevelopment site at 22 Flushing Avenue, where he is building a Wegman’s grocery store. A lot just north at 652 Kent Avenue was also financed in the deal. The loan was not previously reported.

7) Big Bronx Store – $53 million

JJ operating refinanced a four-story retail building at 2501 Grand Concourse with $52 million from Bank of America. JJ bought the building from Vornado Realty Trust in 2001. Tenants include discount clothing retailer Marshalls and electronic appliance store P.C. Richard & Son. The loan was not previously reported.

8) Hail of a loan – $50 million

Property Markets Group and the Hakim Organization are redeveloping a former taxi garage in at 42-50 24th Street in Long Island City and took $50 million from Citibank to finance the project last month. Brad Zackson, of Dynamic Worldwide Group, is a partner of Hakim’s in the deal. The loan was not previously reported.

9) From milk to multifamily? – $49 million

Elmhurst Dairy closed its Jamaica, Queens plant last year, but with real estate partners Honeywell Partners and DC Realty, the company borrowed $49 million from BMO Harris Bank. A new development project could be on the way, but no plans have been announced. The loan was not previously reported

10) Replenished green – $45 million

Berkadia Commercial Mortgage refinanced a $45 million loan to Rabsky Group for its brand new rental building at 26 West Street in Greenpoint. The 96-unit project opened earlier this year.