NEW YORK CITY—Scoring a win for its value-add investment strategy, Madison Realty Capital has sold a multifamily tower on the Upper West Side for more than double its purchase price, GlobeSt.com has learned EXCLUSIVELY. The value spike came after a renovation that also allowed the firm to transact on the property well ahead of schedule. Both the buyer, who was undisclosed, and the seller were represented by Josh Goldflam of Highcap Group.
Initially bought by Madison Realty for just over $7 million in an off-market transaction during 2012, the firm sold 150 W. 84th St. for $12.3 million. Additionally, the company expected to hold onto the asset for up to five years but instead put it on the market two years after the acquisition.
The firm has been renovating and repositioning the property for the past two years. That effort has paid off, Josh Zegen, co-founder and managing principal, tells GlobeSt.com. “We felt strongly that our aggressive renovation plans would enhance the long-term value of this property."
He continues, “Our intention is always to maximize the value of any property investment we make, so we were pleased to close this sale after our renovation and repositioning plans were completed. Our initial goal was to have this property sold in five years, so we were equally pleased to have completed the sale in two years, way ahead of schedule.”
Long term, he says, "Our strategy is to seek out other value-add investment opportunities throughout New York City and other markets that meet our strict investment criteria.”
The property upgrade also brought Madison another benefit, Zegen says. “Because of the quality of our renovations and layouts, we were able to achieve better rents than comparable product in this neighborhood.”
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
