Anonymous LLC buys $5.8M note on Madison Realty Capital Clinton Hill walkup, ends foreclosure

The entity Clinton Lender LLC with anonymous ownership, in care of the law firm Wachtel Missry, bought a note with an original principal of $5.8 million from Blackstone Group secured by Madison Realty Capital’s 16-unit residential walkup building (C1) at 392 Clinton Avenue in Clinton Hill, Brooklyn.

Blackstone Group had filed a pre-foreclosure action, 500899/2025, at the property in January 2025, but the parties agreed to discontinue the action on October 10, according to court records. That’s about a week and a half after the note buyer closed on the loan.

The note purchase closed on October 1, 2025 and was recorded on October 17, 2025. The prior lender was Blackstone Group which held debt that had an original loan amount of $5.8 million.The property has 16,720 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $zero per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The owner bought the property on June 26, 2015, for $7 million.

Prior sales and revenue

The 16,720-square-foot property generated revenue of $608,210 or $36 per square foot, according to the most recent income and expense figures.

The property

The residential walkup building with 16 residential units in Clinton Hill has 16,720 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 44 feet and is 100 feet deep with a total lot size of 4,400 square feet. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The property is in the Clinton Hill Historic District. The city-designated market value for the property in 2022 is $2.2 million. The property has 7 rent regulated units according to city tax records from 2023.

Violations and lawsuits

The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $5.8 million commercial foreclosure concerning a loan filed on January 10, 2025, by Blackstone Group and Rialto Capital Advisors against Madison Realty Capital, Josh Zegen, and Brian Shatz. In addition, according to city public data, the property has received six housing violations and $250 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of two of the three commercial properties representing 24,088 square feet of the 29,688 square feet. The two identified owners are Todd Rose and Madison Realty Capital.
On the tax block, there was one new building construction project filed totaling 1,073 square feet. It is a 1,073 square-foot storage (S-1) building submitted by Curtis Barnhart with plans filed December 18, 2018 and permitted June 5, 2019.

The majority, or 75 percent of the 29,688 square feet of built space are walkup buildings, with mixed-use buildings next occupying 25 percent of the space.

The borrower

The PincusCo database currently indicates that Madison Realty Capital owned at least 59 commercial properties with 2,576 residential units in New York City with 2,623,872 square feet and a city-determined market value of $366.2 million. (Market value is typically about 50% of actual value.) The portfolio has $1.6 billion in debt, with top three lenders as Signature Bank, MF1 Capital, and Elliott Investment Management respectively. Within the portfolio, the bulk, or 70 percent of the 2,623,872 square feet of built space are elevator properties, with walkup properties next occupying 12 percent of the space. The bulk, or 44 percent of the built space, is in Queens, with Manhattan next at 30 percent of the space.

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