Madison Realty Capital (MRC) announced the closing of a $297 million construction loan for River Park, a 3-building mixed-use development in Cobble Hill, Brooklyn consisting of approximately 325,000 sellable square feet, and including 172 luxury condominium units, 66,900 square feet of community facility space, and 328 parking spaces. MRC, an institutionally-backed real estate investment firm focused on real estate equity and debt investments in the middle markets, provided the loan for the project, currently under development by Fortis Property Group, a repeat MRC borrower, on three adjacent sites that formerly comprised the Long Island College Hospital (LICH) medical campus.
“We are very excited to be working with Fortis again on the completion of these Cobble Hill buildings,” said Josh Zegen, Co-Founder and Managing Principal of MRC. “We believe that the limited product in the Cobble Hill/Brooklyn Heights market combined with the exceptional product Fortis will deliver will make this a marquis project for Brooklyn.”
“MRC continues to provide one-stop shopping in the real estate financing market,” Zegen adds. “We believe we’re offering a more efficient lending process, based on an understanding of what sponsors need and our deep knowledge of New York City at a micro-market level. In this case we previously provided a loan to Fortis for the first phase of land acquisition and predevelopment, and we’re pleased to remain in the deal as construction lender for this high-profile project.”
“We are excited to proceed with the construction of our beautiful River Park project,” said Jonathan Landau, CEO of Fortis Property Group. “Working together with Josh Zegen and MRC enabled us to achieve excellent leverage at competitive pricing for this landmark development. River Park 1, 2 and 5 will anchor the new Brooklyn Waterfront District and bring a new level of luxury living to Cobble Hill.”
Fortis agreed in 2015 to acquire 18 buildings that comprised the former LICH campus for $240 million through a competitive RFP process run by the seller, the State University of New York. Fortis financed the first phase of the acquisition with a $107.25 million bridge loan from MRC. The new loan proceeds from MRC will be used to retire the previous bridge loan and complete construction of the three-luxury residential condominium buildings, including a waterfront tower located at 350 Hicks Street (“1 River Park”); a high-rise condominium tower located at 95 Pacific Street (“2 River Park”); and a contextual condominium building located at 349 Henry Street/112 Pacific Street (“5 River Park”).
About Madison Realty Capital (MRC)
MRC is a New York-based real estate investment firm that pursues real estate equity and debt investments in the middle market. Founded in 2004, MRC has invested in approximately $6.0 billion of transactions in the multifamily, retail, office, industrial and hotel sectors.
About Fortis Property Group
Fortis Property Group, LLC is a real estate investment, operating and development company that has acquired, developed, and managed over $5.0 billion / 8 million SF of residential condominium, Class A office, multifamily, and industrial properties with a focus on the New York, Boston and Dallas metropolitan areas.