The Real Deal New York

Madison Realty Capital snags $63M loan from TPG for Brooklyn rental

Building at 504 Myrtle Avenue contains 143 units, including 29 affordable ones
By Eddie Small | December 07, 2017 05:10PM

504 Myrtle Avenue

Madison Realty Capital has landed a $63 million financing from the private equity firm TPG for a property in Clinton Hill.

The debt package from TPG includes a $17 million gap mortgage. Part of the financing replaces an $11.8 million mortgage Madison received from Emigrant Bank last year for the property at 504 Myrtle Avenue.

Madison originally filed its plans to develop the rental, called the Posthouse, on the former site of the Pratt Station Post office in 2014. The new structure contains 143 units, 29 of which are affordable.

The firm has been a very active lender, and in November doled out a $64 million construction loan to Cornell Realty Management for the company’s mixed-use project at 200 Kent Avenue in Williamsburg.

Meanwhile, TPG — which raised a $2 billion real estate fund in 2015 — teamed up with Deutsche Bank in May on a $164.3 million condo inventory loan for Tessler Developments’ 33-story tower at 172 Madison Avenue.

Madison and TPG did not immediately respond to requests for comment.