NEW YORK CITY—Madison Realty Capital has sold 385 Union Ave. in the Williamsburg neighborhood of Brooklyn. The six-story property has 47 residential apartments comprising approximately 40,000 rentable square feet and was sold for approximately $37 million.

The property was originally in foreclosure and under management of a receiver but MRC was able to negotiate the acquisition of the debt with the previous lender, the release of all existing subordinate liens and the transfer of the deed from the existing owner for just under $22 million in May 2012. After taking title to the property, MRC was able to obtain a final certificate of occupancy, re-instate prior tax abatements and renovate the property to a Class A standard. The property was then sold by MRC through an off-market transaction facilitated by Aaron Jungreis of Rosewood Realty Group, who represented both parties. The buyer reportedly was Sugar Hill Capital Partners, according to The Real Deal.

“We're particularly proud to exit this investment, which exemplifies the benefits of our vertically integrated structure,” says Josh Zegen, co-founder and managing principal of MRC. “We entered the deal through a distressed acquisition in 2012 and were able to implement an effective strategy which stabilized the asset and maximized value for all parties.”