Madison Realty Capital (MRC) has closed on a USD13.0 million loan that will be used to finance the acquisition and redevelopment of the landmarked Upper East Side townhouse located at 39 East 72nd Street, NYC.
By providing financing, MRC facilitated a closing within an extremely limited time frame. The transaction will enable the borrower to reposition the 25-foot-wide townhouse as a premier new residential development in order to capitalise on the highest and best use of the property.
"We have established a reputation for certainty of execution in time-sensitive deals, which helped us source and secure this great opportunity," says Josh Zegen, Co-Founder and Managing Member of MRC. "Our lending platform continues to identify quality middle-market deals in great locations, with experienced sponsors, helping us achieve our overall goal of strong risk-adjusted performance. This particular property has an interesting history, in addition to its stellar location and landmark status, and the borrower's business plan should add significant value."
The five-story townhouse at 39 East 72nd Street was constructed in 1881 by the architect and developer Robert B Lynd as his personal residence. Formerly the home of fashion designer and heiress Gloria Vanderbilt, the townhouse is now occupied by a mix of commercial users, including two art galleries. Following the landmarks process, the borrower plans to convert the townhouse into luxury residential condominiums. The Upper East Side is a perennial favourite among condominium buyers, offering access to all of New York while maintaining a residential feel. Residential condominiums in the neighbourhood are selling in excess of USD2,500 per square foot.