NEW YORK CITY-After closing yesterday on a loan it provided, Madison Realty Capital has purchased of a single-borrower portfolio of six loans from a large commercial bank, in a relationship-based, off-market transaction. The aggregate principal balance of the purchased loans, secured by six different multifamily and mixed-use properties in the Bronx and Brooklyn and owned by the same borrower, was approximately $18 million.

Says Brian Shatz, co-founder and managing member of MRC, “With significant changes in the bank regulatory environment, lenders continue to sell off non-performing and underperforming loans. Recently many of our bank counterparties have been looking to sell entire credits – in other words multiple loans with the same borrower – and this transaction is a prime example of the trend. MRC is uniquely positioned to be the acquirer in these situations.

“Unlike many debt purchasers,” he continues, “we're willing and able to take down whole portfolios that are diverse in terms of location and property type. We're not restricted to certain neighborhoods or properties and that flexibility, supported by our vertically integrated platform, is helping us win these types of deals.”