Maddd Equities pays $42M to Gordon Group for landmarked space under Ed Koch QueensboroBridge
Jorge Madruga’s Maddd Equities through the entity Maddd 550 Broad LLC paid Gordon Group Holdings’s Bridgemarket Associates, L.P. $42 million for the master lease for landmarked space under the Ed Koch Queensboro Bridge, with the address 405 East 59th Street in Lenox Hill. Eliezer “Eli” Weiss, principal of Joy Construction, a frequent partner with Maddd, is a signatory on the acquisition and guarantor of the financing.
The deal closed on May 12, 2020, and was recorded on May 15, 2020. The transaction consists of 1 parcel, including the tax class NYC Department of Public Works (Y8). The property is 98,000 square feet.
The master lease was owned by the late Las Vegas investor Sheldon Gordon’s Gordon Group Holdings. Maddd Equities is a real estate development firm best known for its affordable housing projects in the outer boroughs, but it is very active often in partnership with Joy Construction, in market rate projects as well.
Sheldon Gordon, who died in 2017, signed the first version of the master lease as tenant in 1983. The landlord is the city of New York. The entity that sold the master lease was controlled by Christine Gordon, Sheldon’s widow and executrix of his estate.
In 2015, Food Emporium vacated the space, after having occupied it since 1999.
In February 2020, it was reported that grocer Trader Joe’s would lease space, and Maddd filed plans earlier this year with the Landmarks Preservation Commission to renovate the premises.
In addition to the purchase, Maddd assumed the existing $33 million in debt which has been securitized as part of the JPMorgan Chase Commercial Mortgage Securities Trust 2013-C36.
The DOB issued a major alteration (A1) initial temporary certificate of occupancy for the building on June 5, 2013.
Over the past five years, there have been 6 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. There were 6 renovation/alteration projects (A2) applied for with a total estimated value of $3,217,000.
Direct link to Acris document. <a href=”https://a836-acris.nyc.gov/bblsearch/bblsearch.asp?borough=1&block=01454&lot=0001″ target=”_blank”>link</a>
Direct link to the city’s interactive property map, ZOLA. <a href=”https://zola.planning.nyc.gov/lot/1/1454/1″ target=”_blank”>link</a>