Madison Capital borrows $118M from Blackstone Mortgage Trust for commercial property in Sunset Park

Richard Wagman’s Madison Capital through the entity Salmar Properties, LLC as borrower signed a loan agreement with lender Blackstone Mortgage Trust through the entity Parlex 15 Finco, LLC – Series IX, valued at $117.6 million for 1 parcel, including the tax class fireproof warehouse (E1) at 850 3rd Avenue in Sunset Park. The deal closed on January 17, 2020 and was recorded on January 28, 2020.
The loan includes $77.6 million in new debt in the form of a gap mortgage.
The property contains a total of 1,120,000 square feet of built space.
The average loan per buildable square foot is $105.
The last time the entire property sold was August 15, 2011, when Marvin Schein’s Salmar Properties acquired it for $9,127,200. Madison Capital joined as a partner and recapitalized the asset last year.
The DOB issued a major alteration (A1) initial temporary certificate of occupancy for the building on December 31, 2013.
Over the past five years, there have been 22 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. There were 22 renovation/alteration projects (A2) applied for with a total estimated value of $12,986,262.
Direct link to Acris document. link
Direct link to the city’s interactive property map, ZOLA. link