Developer of Bed-Stuy condo project nabs $55M loan

The developer behind a ground-up condominium development at 948 Myrtle Avenue in Brooklyn has secured a $55 million construction and refinancing loan.

Madison Realty Capital on Tuesday confirmed the loan for the 214,000-square-foot mixed-use project, but would not confirm the identity of the developer. Sources told The Real Deal that Isaac Schwartz is behind the development, which spans three adjacent sites, at 936 Myrtle Avenue, 948 Myrtle Avenue, and 258-264 Throop Avenue and will include rental and condominium units, ground floor retail and parking.

Prior reports suggested that Rabsky Group and Cornell Realty are also involved in the development, but that could not immediately be confirmed.

The loan will be used to retire a $15 million mortgage on the property, also provided by Madison last year. Two of the buildings will rise nine floors, and house 77 condo units, while the third building will contain 24 affordable rental units over five floors, according to Madison. The site used to house a Key Foods.

The financing package in Bed-Stuy is the latest in a string of loans issued by Madison. The firm recently offered a lifeline to Ian Bruce Eichner’s Continuum Company with a $167.5 million condo inventory loan for 45 East 22nd Street. And last month, the firm granted a $155 million loan with Apollo Global Management to developers Sumaida + Khurana for 611 West 56th Street.