NEW YORK CITY—Madison Realty Capital, an institutionally-backed real estate investment firm, has provided a $40 million first mortgage loan collateralized by three adjacent mid-block lots located at 215, 217 and 219 West 28th Street in the Chelsea neighborhood of Manhattan.

The property consists of three contiguous lots at 215, 217, and 219 West 28th Street and includes additional air rights from two adjacent properties. The site offers 75 feet of frontage along West 28th Street and extends 100 feet to the north towards West 29th Street. Combined, the site allows for an as-of-right development totaling approximately 93,000 square feet. In addition, the borrower can take advantage of an inclusionary housing bonus to expand the property to a total FAR of 12.0.

The transaction demonstrates MRC's ability to identify value in off-market transactions and provide certainty of execution, the firm says. With the underlying mortgage set to mature, the borrower required a time of the essence closing in order to refinance the existing debt and secure additional time to complete the pre-development phase of the project.