“We have steadily expanded our equity investment activity over the past several years, closing in excess of $600 million of direct equity transactions, supported by the same vertically integrated platform that has bolstered our success as debt investors,” he says. “Our strategy is to brand all our equity and debt investments under Madison Realty Capital and make it the single identifier for all our real estate activities.”

Getting the ball rolling, MRC's purchase in the Hudson Yards neighborhood comprises two ground floor retail units totaling approximately 20,000 square feet. Atria Builders, developer of the new 399-room Marriott hotel next door, was the seller and will retain unused air rights for the Marriott development. MRC plans to reposition the retail space to capitalize on new demand for retail in the Hudson Yards neighborhood, and will renovate and lease the vacant apartment units. Prior to the acquisition by MRC the two properties had been family-owned for approximately 50 years.

In Harlem, MRC's property is part of the recently completed Gateway Tower luxury residential condominium development. The retail space acquired by MRC is currently occupied by several long-term tenants. The property offers strong in-place cash flow and significant upside potential, given the increasing popularity of the neighborhood.

“We expect to add significant value to the new Hudson Yards and Harlem properties, adds Josh Zegen, also co-founder and managing principal of MRC. “These are well-located assets in hot neighborhoods, and we will look to unlock their potential through our actively managed platform."

More broadly, he notes, "This is just the beginning of a substantial pipeline of equity deals that Madison Realty Capital will announce in the coming months. Additionally, we remain extremely active in the debt market.”