NEW YORK, Jan. 19, 2021 (GLOBE NEWSWIRE) — Madison Realty Capital, a New York City based real estate private equity firm focused on debt and equity investment strategies, today announced it has provided $53 million in construction financing to Heritage Equity Partners, led by Toby Moskovits and Michael Lichtenstein, for a 150–unit ground–up multifamily development located at 875 4th Avenue between 32nd and 33rd Streets, in "South Park Slope," also known as the Sunset Park neighborhood of Brooklyn, NY.
The construction loan features a LIBOR–based floating rate and was arranged by Meridian Capital Group and its Director Elliot Kunstlinger, who has a working relationship with both Heritage Equity Partners and Madison Realty Capital. The project is expected to be completed by the second quarter of 2022. Heritage Development, a vertically integrated development and management firm with a focus on residential, commercial, and hospitality projects, is serving as general contractor for the project.
Located in an area certified as a "Qualified Opportunity Zone" under the Tax Cuts and Jobs Act of 2017, the property will span approximately 140,000 square feet and include a total of 150 studio, one–bedroom and two–bedroom units. Residents will enjoy access to numerous top–tier amenities including a gym and yoga studio, children's playroom, shared workspace, function room, shared outdoor space, rooftop grill and sun deck, as well as in–unit washers and dryers. Further, the building boasts waterfront views and is the only Class A residential building within walking distance to the bustling creative hub at Industry City, as well as numerous transportation options including the D, N and R subway lines. Over the past five years, Industry City has experienced an influx of tech and creative jobs which has led to a vibrant revitalization of the area including numerous mixed–use, residential and retail development and office redevelopment projects.
"Sunset Park is a growing, creative neighborhood, yet suffers from an undersupply of attractive housing options," said Josh Zegen, Managing Principal and Co–Founder of Madison Realty Capital. "We are pleased to build upon our relationship with Heritage Equity Partners to provide a flexible solution and execute this $53 million loan that will bring vital new housing options to this vibrant and growing neighborhood."
"This area has seen major changes in the last few years, and there is not enough housing supply for all the new jobs created in this area," said Toby Moskovits, CEO of Heritage Equity Partners. "While there has been a large increase in companies moving into this area, there have not been enough residences built to accommodate the growth in population. There is a need for more housing in this area, for more rental apartments, and especially a need for new construction luxury units in this area. Our project will be providing both, as we are providing both affordable and luxury units in the two buildings that we will be constructing on this site. It is difficult to find sites in this area that allow for multi family development, and we are happy to be part of the solution for the housing shortage in this area."
Michael Lichtenstein, President of Heritage Equity Partners pointed out that this area is where the so–called South Park Slope area meets Industry city, "and so the confluence of neighborhoods of Sunset Park, Industry City and South Park Slope, makes this location very attractive for a mixed–use project, providing housing to all income levels that are attracted to this neighborhood."
"We have always focused on pioneering projects in new and growing neighborhoods, and are delighted to move ahead with this project, which brings to the fore our team's strengths in development, construction, and brings our vision to fruition, creating a beautiful building that will cater to all residents of these neighborhoods. While the pandemic has delayed all development projects in NYC, we are happy that we can move ahead with this project immediately thanks to our long running relationship with Madison Realty Capital," added Lichtenstein.
About Madison Realty Capital
Madison Realty Capital (MRC) is a New York City based real estate private equity firm focused on debt and equity investment strategies with regional offices in key markets including Los Angeles and Dallas. Founded in 2004, MRC has closed on approximately $13 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. MRC is a fully integrated firm with over 60 employees across all real estate investment, development, and property management disciplines. 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.
About Heritage Equity Partners
Heritage Equity Partners was founded by Toby Moskovits and Michael Lichtenstein in 2008, and has been at the forefront of innovative and community building projects. Heritage Equity Partners developed many well–known projects, such as the Spire Lofts, the Williamsburg Hotel, 25 Kent, and its principals have been amongst the first developers in Williamsburg, Long Island City, and are now developing in Mott Haven and South Bronx.
About Meridian Capital Group
Founded in 1991, Meridian Capital Group is America's most active dealmaker and one of the nation's leading commercial real estate finance, investment sales and retail leasing advisors. In 2019, Meridian closed over $40 billion in financing across more than 250 unique lenders. Meridian represents many of the world's leading real estate investors and developers and the company's expansive platform has specialized practices for a broad array of property types including office, retail, multifamily, hotel, mixed–use, industrial, and healthcare and senior housing properties. Meridian is headquartered in New York City with offices in New Jersey, Maryland, Illinois, Ohio, Florida, and California.