AB Capstone lands $37M loan to develop Ridgewood project

Madison Realty Capital is the lender

1637 Woodbine Street and Josh Zegen
1637 Woodbine Street and Josh Zegen

Meir Babaev’s AB Capstone secured a $37.5 million land and predevelopment loan from Madison Realty Capital for its planned mixed-use project in Ridgewood.

The company plans to build a 17-story, 235,000-square-foot property on an assemblage including 3-36 and 3-50 Saint Nicholas Avenue, 1637 Woodbine Street and 5431 Myrtle Avenue.

AB is using the loan to pay for the acquisition of the Myrtle and Woodbine lots — currently occupied by two small commercial buildings — and to pay off previous loans, buy out a partner and start foundation work, the company said in a statement.

The project will include 129 apartments, 90,000 square feet of commercial space and 352 parking spaces.

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No brokers were involved in the loan deal.

Last year AB Capstone sold a Williamsburg rental building for $43.3 million.

Josh Zegen’s Madison is one of New York’s most active commercial real estate lenders. Last month the company issued a $91 million construction loan for JDS Development and Largo Investments’ Fitzroy condo project in Chelsea.