NEW YORK CITY—Madison Realty Capital has approved a $23.7-million loan to borrower Empire Realty Management to refinance 54 Thompson St., a mix-used seven-story property in Manhattan's SoHo submarket. Loan proceeds will fund tenant improvements, leasing and loan closing costs.
Madison Realty's $1.1-billion MRC Debt Fund IV, its newest and latest, originated the loan for the 100% occupied property. The transaction was a no-brainer deal, says Josh Zegen, co-founder and managing principal, in a prepared statement. Perched by its location in an amenity and transportation-rich submarket, the building has a strong tenant roster.
Empire Realty acquired the estimated 28,164-square-foot building in June 2005 for $15 million, or $536 per square foot. The loan will replace a $21.4-million Ladder Capital loan originated in March 2018.
Turnkey co-working firm Breather occupies 12,777 square feet on the fourth and fifth floors of the property, which Empire plans to build-out further with the loan proceeds.
Other tenants occupying the property situated on the northeast corner of Thompson and Broome Street, include Cheshire Films, a luxury branding studio; Thompson Studios, a recording complex; and creative agency Visualhouse USA. On the ground floor is Mediterranean restaurant Pera. The ground-floor retailer and the building's full occupancy made the property attractive to loan on, Zegan said.
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Mariah Brown
Mariah Brown is the New York Bureau Chief and Real Estate Reporter for GlobeSt.com, covering the New York Metro area, Northeast region and national real estate trends. She is responsible for producing multi-media content, including articles, podcasts and video. Before joining the GlobeSt team, she served as a New York Times fellow, reported for the Associated Press in New York and Philadelphia and several other New York City-based outlets.
