Madison Realty Capital, a New York-based lender and real estate private equity firm, is continuing its push into the L.A. market with a $91 million loan to finance a mixed residential rental project in the San Fernando Valley.
“Homes in the San Fernando Valley are reaching record sale prices, yet housing inventory has not kept pace with this sustained demand,” Josh Zegen, Madison’s co-founder and managing principal, said in a statement.
As greater L.A.’s residential market has soared throughout the pandemic, prices in the traditionally more affordable San Fernando Valley have indeed been notching records: In May, the area’s median single-family closing price hit $945,000, the highest mark ever and more than 25 percent above the median a year earlier. Since then market has cooled, but only slightly: In October, the area’s median was $925,000, according to the Southland Regional Association of Realtors, still well above the figure from a year earlier.
Madison’s loan will help develop a large mixed-use project in Granada Hills, a suburban neighborhood at the northern edge of the City of Los Angeles. The project, located at 16225 San Fernando Mission Boulevard, has plans for 6,000 square-feet of retail space plus 102 townhomes, slated for single family rentals, and a three-story apartment building with 140 units.
Madison extended the loan to a partnership between Harridge Development Group, Silverpeak Real Estate Partners and Atalaya Capital, which are developing the project. Harridge Development Group bought the eight-acre site, formerly a shopping center, for $23 million in 2016 through an LLC. The seller was Gelb Enterprises.
Madison is a longtime New York player whose recent interests include a waterfront complex in Staten Island and a massive mixed-use project in Downtown Brooklyn.
But the firm has also been looking west: Last year Madison provided $150 million for seven properties in the San Fernando Valley and Santa Monica. That loan was intended to finance a developer’s renovations on six rental properties, including one in Granada Hills, as well as finance a future mixed-use project in Santa Monica.
Earlier this year, Madison also loaned $110 million for a master planned community in the community of San Pedro, near the Port of Los Angeles. That financing went to a group that included Harridge Development Group and Silverpeak Real Estate Partners.
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