NEW YORK CITY—Madison Realty Capital closed a $31.49 million first mortgage loan collateralized by a mixed-use development at 744 Bedford Ave. in Williamsburg, Brooklyn. All of the proceeds of the loan will be used to complete construction of a 134,742 square-foot building. Industry sources confirm that Mendel Roth of Bedford Roth Holding LLC is the property owner.
The project plans include 86 one-bedroom units averaging 565 square feet, and two approximately 870 square-foot two-bedroom units, 18,393 square feet of retail space and 76 parking spaces. All of the residential units will have outdoor space including terraces or balconies ranging from 30 to 100 square feet.
The project qualifies for the 421a tax abatement. The program originally began in 1971 to encourage development of underutilized land by reducing property taxes for a set amount of time. The program originally lapsed in 2016 but was renewed in April 2017.
Madison Realty Capital funded approximately $5.6 million at closing and the remaining funds are expected to be drawn through the remainder of the construction process. The borrower anticipates topping out the building this summer and completing construction in spring 2019.
The property is located in the southern part of Williamsburg, Brooklyn, in an area experiencing significant residential demand.
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Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
