The Real Deal Miami

Madison Realty Capital picks up defaulted loan and with it, southwest Miami shopping center

Co-founder says the New York City-based fund is increasing its presence in Florida
June 24, 2013 02:00PM

Josh Zegen

Josh Zegen

Madison Realty Capital, a New York-based commercial real estate investment fund, bought a defaulted senior note from Wells Fargo collateralized by a mostly vacant retail park in southwest Miami, co-founder and managing member Josh Zegen told The Real Deal.

The note, purchased at a “significant discount” from the $5.2 million principal balance, was originated in 2008 to finance the construction of the 43,244-square-foot Puerta Del Sol Plaza, which is anchored by a Family Dollar store but where 11 of 20 retail spaces sit vacant, Zegen said.

The note went into foreclosure last August and the borrower is in bankruptcy, Zegen said. MRC is actively pursuing opportunities in South Florida to acquire distressed debt and make bridge loans.

“We’re seeing a lot of money headed to South Florida and not just to primary markets,” he said. –Emily Schmall