Madison Realty Capital (MRC) has provided a US$48 million senior loan for the funding of a US$79.1 million financing package for the development of a mixed-use office project at 3 St. Mark’s Place in Manhattan’s East Village neighbourhood. (US$1 = RM4.15)
Hana Financial Group, a leading South Korean financial services company, provided Real Estate Equities Corporation (REEC), an experienced local developer with an additional US$31.1 million of mezzanine financing to fully capitalise the project.
“Hana approached us to provide the first mortgage loan on this financing package in order to leverage our strong construction lending programme and market expertise,” said MRC co-founder and managing principal, Josh Zegen.
REEC’s development plans call for a 10-storey, 68,224-square-foot modern boutique office building with eight floors of office space, a fitness centre, roof deck and 7,886 square feet of retail, according to a statement.
The property is well-located at the corner of St. Mark’s Place and 3rd Avenue in a section of Manhattan’s East Village that has seen significant growth in demand for quality office space from a mix of tech, finance, law and family office tenants in recent years.
MRC is a New York City-based real estate private equity firm focused on debt and equity investment strategies. It is a fully integrated firm with over 60 employees across all real estate investment, development and property management disciplines.