Madison Realty upsizes loan to $115M for Koreatown apartments

Madison Realty Capital has loaned an extra $81 million to Harridge Development, Silverpeak Real Estate Partners and Urban Green Investments to build two adjacent apartment complexes in Koreatown. 

The private equity firm upsized a $34 million bridge loan, provided last year, bringing the total loan to $115 million, the firm announced Tuesday. Madison did not detail terms of the loan.

The financing has been converted into a construction loan — proceeds will be used to build the 277-unit project across 684 New Hampshire Avenue and 3240 Wilshire Boulevard.

The borrowers have already scored approvals for the development and have “invested significant equity,” though terms were not disclosed. 

The new financing, which Madison’s co-founder Josh Zegen called a “flexible solution,” will allow Madison to “continue to serve as a single source of financing,” he added.

Harridge and its partners bought the sites — formerly home to a 139,000-square-foot hotel and luxury department store I. Magnin & Company — for $30 million in 2020, records show. 

The firms plan to build 107 one-bedroom units, with almost 30,000 square feet of retail, on the Wilshire site, and 170 units with about 950 square feet of retail on the New Hampshire lot. 

Madison Realty and Harridge have a history of working together on projects. 

In 2021, Madison provided Harridge with $485 million in construction financing for its $1 billion redevelopment project of Crossroads Hollywood, where Harridge is planning to build studio space and apartments. 

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