Madison completes nearly $200M private raise in Israel

The proceeds will be invested in real estate debt

Jul.July 03, 2018 05:30 PM

Adam Tantleff, Brian Shatz and Josh Zegen (Credit: Madison Capital Realty)

Madison Realty Capital — the real estate investment firm run by Josh Zegen, Brian Shatz and Adam Tantleff — raised around $200 million in Israel from institutional investors.

Unlike the majority of New York real estate firms that have raised money in Israel, Madison did so in a private round rather than issuing a public bond offering. Investors included investment firm Yalin Lapidot and insurance company Phoenix, according to a report from Israeli business publication TheMarker and confirmed by sources.

The funds will go towards a blind pool and will be invested in real estate debt. Madison is an active lender in New York and recently closed on a $100 million loan for a Bedford-Stuyvesant residential complex called the Cascade, on top of a previous $88 million mortgage for the project, and on a $55 million financing for a ground-up condominium project at 948 Myrtle Avenue in Brooklyn. It also provided Ian Bruce Eichner with a $167.5 million condo inventory loan for his Flatiron development, which is putting a long-standing legal dispute on the property to rest.

Madison is also the lender on Yoel Goldman’s 1 million-square-foot rental project in Bushwick, which is primarily funded by Tel Aviv bonds. Madison provided $270 million for the project, across acquisition, construction and mezzanine loans.

Infin Capital, an investment firm with a roster of New York real estate clients, represented Madison in the capital raise.

Madison declined to comment.

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