New York Skyline.

NEW YORK CITY – Madison International Realty, a real estate private equity firm, has closed on the recapitalization of a $275M multifamily portfolio in New York. The deal includes Urban American, an apartment operator who will continue to manage the 15 properties consisting of studios, one, two, and three-bedroom apartments and ground-floor retail.

Madison International saw the deal as a no-brainer acquisition because of the pent-up demand for affordable housing properties in the city. "Despite the changing regulatory environment, there continues to be a shortage of quality affordable housing in the greater New York area. The densely-populated neighborhoods allow the portfolio to benefit from stable occupancy and offers strong consistent cash flow," said Ronald Dickerman, Madison International Realty founder and president, in a prepared statement.

Previously the portfolio was run by the Urban American closed-end fund, which had neared the end of its expiration.  Madison provided the underlying limited partners with liquidity. The recapitalization allows Urban American to continue its business plan of implementing energy initiatives and building upgrades throughout the portfolio, according to Dickerman.