NEW YORK CITY-With plans to create the world’s largest Ferris wheel and a new waterfront arts & cultural district, strong commercial real estate development is underway on Staten Island’s North Shore—and institutional investors are taking note. Recognizing the demand for housing here, Madison Realty Capital has taken ownership of 224 Richmond Terrace, a 60,000-square-foot, 40-unit multifamily property situated just a half mile south of the Staten Island Ferry in the borough’s burgeoning St. George neighborhood, GlobeSt.com has learned exclusively.

The firm – which specializes in flexible debt and equity financing for middle-market transactions throughout the US – is known for its recent push into distressed multifamily note buys, as evidenced by its recent purchase of 385 Union Ave. in Williamsburg. Marking its first foray on the Island, Madison previously purchased the non-performing first mortgage on the condominium property for $8.4 million, approximately 66% of the unpaid principal balance and 52% of the payoff balance including interest from Bank of New York Mellon, has now taken title by completing foreclosure proceedings.

Joshua Zegen, co-founder and managing member of Madison Realty Capital, tells GlobeSt.com that as a buyer of distressed assets, the company is always looking for “significant” discount-to-value opportunities, and St. George is showing potential. “When I went out there for the first time, I had some familiarity with Staten Island,” he says, noting that the developer of the building, Leib Puretz, constructed several condominium projects in the borough, but went in “at the wrong time,” Zegen says.