$76M pre-foreclosure filed at Madison Realty portfolio with rent-regulated units

A lender group composed of Community Preservation Corporation, Neighborhood Restore HDFC and Related Fund Management, which bought a package of former Signature Bank loans with significant numbers of rent-regulated units, filed six separate pre-foreclosure actions on Friday alleging the borrower Madison Realty Capital was in default on the debt secured by eight buildings.

The buildings, including the links to the court cases, are:

361 East 50th Street, $33 million
216-218 West 22nd Street, $15.5 million
440-442 Tenth Avenue, $9.9 million
17 Bleecker Street, $6.75 million
1419 8th Avenue, $5.9 million
222 East 27th Street, $5 million

Court filings represent the position of one party and are not necessarily accurate or complete. The filing highlights the decline in values for rent-regulated properties since a sales boom in approximately 2014 to 2015.

PincusCo estimates Madison Realty Capital has a portfolio worth $2.4 billion composed of 73 properties with more than 3,200 residential units.

Madison Realty Capital paid $40 million for the elevator building at 361 East 50th Street with 44 residential units in Turtle Bay, that has 50,000 square feet of built space and 45,984 square feet of additional air rights for a total buildable of 96,000 square feet according to a PincusCo analysis of city data. The parcel has frontage of 150 feet and is 85 feet deep with a total lot size of 9,600 square feet. The lot is irregular. The zoning is R10 which allows for up to 10 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $15.5 million. The most recent loan totaled $33 million and was provided by Signature Bank on December 9, 2019.
According to the complaint, “Borrower defaulted under the terms of the Loan Documents by failing to repay the Loan starting with the payment due for December 10, 2023 and continuing thereafter unabated… According to Plaintiff’s records, the last payment made by the Borrower (or Guarantors) of any kind was for the payment due for November 10, 2023.”
Direct link to the property’s ACRIS page.

Madison Realty Capital paid $19.25 million for the walkup buildings at 218 and 2016 West 22nd Street. 218 West 22nd Street has 15 residential units and has 13,875 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 30 feet and is 98 feet deep with a total lot size of 2,967 square feet. The zoning is R8B which allows for up to 4 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $4 million.
According to the complaint to foreclose on the $15.5 million loan covering both 218 and 216 West 22nd Street, “Borrower defaulted under the terms of the Loan Documents by failing to repay the Loan in full on the May 1, 2023 Maturity Date.”
Direct link to the property’s ACRIS page

The walkup building at 216 West 22nd Street with 15 residential units in Chelsea has 13,875 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 30 feet and is 98 feet deep with a total lot size of 2,967 square feet. The zoning is R8B which allows for up to 4 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $3.7 million.
Direct link to the property’s ACRIS page