(Read more on the debt and equity markets.)
NEW YORK CITY-Madison Realty Capital, an institutionally backed, private commercial lender which provides short-term, commercial real estate loans, originated $55 million in new short-term loans to real estate investors during June 2007. Since 2006, the company has financed more than 100 commercial real estate loans totaling in excess of $400 million throughout the US.
"The need for short-term mortgage financing has only grown as conventional lenders tighten their lending parameters," says Josh Zegen, managing partner and co-founder. "In the last two months alone we have doubled our lending ability to keep up with the demand and see no sign of that demand slowing down."
Zegen tells GlobeSt.com that the way the market works, especially the New York City market, is that things happen extremely fast. "Timing on closing is usually around 90 days, so lending demand is high for short-term mortgages.
Zegen explains that one thing they are seeing in Manhattan is that developers need fast financing to earn the credit from the 421-a tax credit prior to the December end date. "We are seeing an increase in opportunities based on the elimination of the 421-a program, which is a tax incentive that owners of property benefit from in New York City. This program has been the impetus for a lot of residential development," he says. "Because the program is ultimately going to be eliminated, developers have been expediting their development plans to start foundations so that they will get the benefit from this tax program."
Zegen continues that, "developments that do not meet these time requirements will have negative ramifications on the owners' property value and financing leverage," he explains. "Madison Realty Capital has seen a number of opportunities where speed is needed to get a project to a point where they can benefit from these tax savings before the deadline of this program."
MRC's specialty is in providing short-term loans for up to three years for financings ranging from $1 million to $50 million. With more than 50 years of combined experience, the partners at MRC have the knowledge and experience to find creative solutions for even the most problematic deals.
The company provides bridge financing for a variety of property types including: retail, multi-family, office, hotel, industrial, land and specialty properties. Recent financings include: a $25.7-million refinance and construction loan for a residential development in Amagansett; a $10-million refinancing of an office condominium in Orlando; an $8.5-million refinance of an apartment building in Phoenix; and a $2.2-million refinance secured by a retail property in New Orleans.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
