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NEW YORK CITY-Locally based Madison Realty Capital, an institutionally backed, private commercial lender which provides short-term commercial real estate loans, completed its most successful month since its 2005 inception. The firm originated more than $70 million in commercial financings during November, bringing its 2007 total to approximately $350 million, and Josh Zegen, managing partner and co-founder tells GlobeSt.com that the firm is on track for between $400 million to $450 million by year's end.
"This has been an outstanding year for us," Zegen tells GlobeSt.com, noting two specific reasons. "Our name is getting out there as we have grown in the market, and the credit crunch has worked in our favor."
He continues that as the availability of credit has waned as a result of issues in the subprime market, "we have seen a substantial increase in the number of originations. Our ability to provide short-term bridge loans quickly and at reasonable terms is extremely attractive in this market, and has led to our best month to date."
Zegen explains to GlobeSt.com that looking ahead in 2008, he doesn't see any sign of demand slowing down. "Looking ahead to 2008, we don't see an immediate end to tight credit standards and have positioned our team to respond to the demand." One example is a $26.4-million refinancing deal that the company completed in November. The borrower, a commercial developer, approached Madison to refinance its 500,000-sf Jersey City warehouse--which it acquired in the early '90s--when its current loan neared maturity. The MRC team quickly evaluated the warehouse's investment potential based on its location in a gentrifying Jersey City neighborhood and the potential for revenue-producing opportunities in the near future. After and securing the collateral agreeing to terms, MRC completed the loan with a turnaround time tailored to meet the borrower's needs, which Zegen explains was only about three weeks.
Other November MRC financings included: an $11-million refinancing transaction for a 20,000-sf retail building in New York; a $7.3-million refinancing deal for a mixed-use residential building in New York; a $6.7-million construction loan for condominium development in Swan Lake; and a $4.4-million loan for construction on a CVS Triple New Retail Building in Staten Island.
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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.
