By Joshua Burd
A private equity firm has expanded its reach in the New Jersey commercial real estate sector, announcing a $35 million loan for a two-building office portfolio in Essex County.
The New York-based lender, Madison Realty Capital, said the transaction is part of nearly $160 million in newly completed loans across the country. The firm said the financing will support two fully leased, Class A buildings in the Short Hills section of Millburn, although it did not disclose their addresses.
Madison has also originated a $95.75 million construction loan for a 70-unit residential condominium development in North Bergen and an 885-bed student housing development in Northern California, according to a news release. The borrower will also use the financing to recapitalize a six-story townhouse on New York City’s Upper West Side.
The third transaction involved $27 million in senior financing for the ground-up development of a high-end multifamily property in the Orlando, Florida area, according to a news release. Each of the deals came under what Madison described as a broader $1 billion income-oriented debt investment vehicle that targets lighter value-add and core-plus real estate transactions with a greater focus on income generation with rates of some 4 to 6 percent.
“Madison is committed to developing financing solutions to meet the evolving needs of our borrowers and to capture more income-oriented opportunities that allow us to offer investors a differentiated return profile while generating risk-adjusted returns across cycles,” said Josh Zegen, the firm’s managing principal and co-founder. “These transactions highlight Madison’s proven ability to provide established real estate lenders with customized financing solutions to support unique portfolios and high-quality assets across the country through every phase of development.
“We are continuing to build on the strength of our established lending platform nationwide and look forward to identifying exclusive investment opportunities for our investors.”