Madison Realty Capital closes $1B debt fund

Company has now totaled $10B in transactions since founding 15 years ago

Apr.April 15, 2019 12:45 PM
Madison Realty Capital managing principals Adam Tantleff, Josh Zegen and Brian Shatz

Madison Realty Capital managing principals Adam Tantleff, Josh Zegen and Brian Shatz

Madison Realty Capital closed on its latest debt fund, raising more than $1 billion.

The real estate investment and lending firm topped off its fourth debt fund, Madison Realty Capital Debt Fund IV LP, with a $1.136 billion raise, the company announced Monday.

That exceeded its original goal of $1 billion.

The capital for the fund was sourced from investors in the U.S., Europe, the Middle East and Asia, including public and corporate pension funds, foundations and endowments, family offices, and wealth managers, company officials said.

“As one of the early institutionally-backed private real estate debt funds we have grown our platform and increased our market share, and our newest fund provides us with over $4.5 billion of capacity to address the needs of our clients,” MRC managing principal Adam Tantleff said in a statement.

The fund originates and acquires commercial mortgage loans, mezzanine loans and preferred equity interests, the company said.

The firm also announced that it has now completed more than $10 billion in debt and equity transactions since it was founded in 2004. MRC’s first fund was launched in 2005 and raised over $300 million. The third fund, closed in 2016, raised $695 million.

According to previous reports, the Texas Municipal Retirement System and the Texas Permanent School Fund each committed up to $100 million to the MRC fund.

Madison recently provided a $138 million construction loan to Levi Balkany’s Happy Living Development for a 155-unit mixed-use project in West Harlem. The firm made another Upper Manhattan construction loan in February, providing $52.5 million to Eran Polack’s HAP Investments for a mixed-use development site at 4452 Broadway in Washington Heights.

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