Recapitalization of 15-story, mixed-use luxury property closed in less than two weeks

Madison Realty Capital (MRC) and Bluestone Group have provided a$32 million mortgage and mezzanine financing to recapitalize 271 Lenox Road, a mixed-use rental property built by New York City-based real estate development firm Hello Living.

MRC provided a $28 million first mortgage and arranged a $4 million mezzanine loan provided by Bluestone Group, closing the deal in under two weeks and allowing for Hello Living to quickly execute a time-of-essence (TOE) partner buyout.

“Our flexibility, expertise and diligence allowed us to seamlessly arrange this complex transaction between multiple parties and tailor the financing package to the specific needs of this repeat borrower, all within an extremely tight timeframe,” said Josh Zegen, Co-Founder and Managing Principal of MRC.

The financing follows MRC’s $14.5 million refinancing of Hello Living’s seven-story mixed-use residential property at 1357 Flatbush Avenue in Brooklyn, which closed just last month.

“We are extremely proud to have executed yet another successful financing for Hello Living,” Zegen added. “This sponsor has already achieved great success at 271 Lenox, which was completed just last year and is nearly fully occupied.”

The 15-story, 76,000-square-foot luxury building at 271 Lenox Road includes 55 rental units, 9,000 square feet ofground floor commercial space and a parking garage. It is located at the southeastern edge of Prospect Park in Brooklyn’s Prospect Lefferts Gardens neighborhood.

The rental units at 271 Lenox, located on floors two through 15, include 52 two-bedroom and three three-bedroom apartments. They feature open layouts, expansive north and south views, private elevator entrances, large windows, stainless steel appliances, in-unit laundry and polished concrete floors. A majority of units also feature private outdoor space.

Building amenities include a fitness center, roof deck, a parking garage and bicycle storage. The property sits just a few blocks from the Q express train at Parkside Avenue, at the edge of Brooklyn’s Prospect Park, and two blocks from the 2 and 5 Express trains at Winthrop Street.

About Madison Realty Capital (MRC)

Madison Realty Capital (MRC) is a New York City-based real estate private equity firm focused on real estate debt and equity investment strategies. Founded in 2004, MRC has invested in approximately $10 billion of transactions in the multifamily, retail, office, industrial and hotel sectors. The firm manages investments in the United States on behalf of a global investor base consisting of corporate and public pension funds, sovereign wealth funds, university endowments, foundations, fund of funds, family offices, and high net worth individuals. MRC is a fully integrated firm with over 70 employees across all real estate investment, development, and property management disciplines. Debt strategies include construction and acquisition lending, special situation financing and debt acquisitions; equity real estate strategies include opportunistic and value-add investments as well as ground-up development. Among other industry recognitions, MRC has been named to the Commercial Observer’s prestigious “Power 100” list of New York City real estate players and is consistently cited as one of the industry’s top construction lenders.