NEW YORK, Jan. 13, 2020 — Madison Realty Capital (MRC) originated a $27 million first mortgage loan collateralized by a multifamily project under construction at the NE corner of Jefferson Ave and 23rd S Street in Tacoma, Wash. and a development site at 2300 8th Avenue in Seattle. In addition, the loan was collateralized by investment properties in Bellevue, Washington.
The financing allows the borrower to complete construction on a planned eight-story, 158,952-square-foot mixed-use rental building with 144 apartment units and 5,917 square feet of ground-floor retail in the emerging Tacoma market. The property is already 65% completed and will be a key component of The Tacoma Town Center, a multi-phase mixed-use urban development that will include multifamily, retail and office space.
In addition, the borrower used the funding to refinance an existing land loan on a 9,878-square-foot development site located in the Denny Triangle/Belltown neighborhood of downtown Seattle. The site is currently improved by a vacant restaurant building and entitled for a future luxury condominium tower.
“This was an attractive financing opportunity given the location of the sites and a seasoned sponsor with extensive real estate investment and development experience,” said Josh Zegen, Co-Founder and Managing Principal of MRC. “MRC was able to provide the borrower with a one-stop shop execution addressing all of their needs, including financing the Tacoma asset mid-construction to prevent significant delays.”
Zegen adds, “MRC will look for other opportunities in the greater Seattle metro area as part of our long-term expansion strategy to deliver customized financing solutions to markets nationwide.”
The Tacoma mixed-use property is in the Hilltop neighborhood, adjacent to the University of Washington Tacoma. When finalized, the property’s 144 apartment units will be located on floors three through eight with a unit mix of 36 studios, 83 one-bedrooms, and 25 two-bedrooms. A partially subterranean, 116-space parking garage will cover the three bottom floors with entrance/exit along 23rd St and a 1,000-square-foot amenity room will be located on the third floor.
About Madison Realty Capital (MRC)
Madison Realty Capital (MRC) is a New York City based real estate private equity firm focused on debt and equity investment strategies with regional offices in key markets including Los Angeles and Dallas. Founded in 2004, MRC has closed on approximately $12 billion of transactions in the multifamily, retail, office, industrial and hotel sectors. The firm manages investments in the United States on behalf of a global investor base. MRC is a fully integrated firm with over 60 employees across all real estate investment, development, and property management disciplines. Among other industry recognitions, MRC has been named to the Commercial Observer’s prestigious “Power 100” list of New York City real estate players and is consistently cited as one of the industry’s top construction lenders.