Madison Capital signs $25.5M refi with Northeast Bank for two properties in Red Hook

Madison Capital through the entity MC PR III 688 Court Realty LLC as borrower signed a refi loan with lender Northeast Bank valued at $25.5 million for two properties including the industrial building (G7) at 688 Court Street in Red Hook, Brooklyn and property at 702 Court Street in Red Hook, Brooklyn.
The deal closed on November 14, 2025 and was recorded on December 1, 2025. The prior lender was Blackstone Group which held debt that had an original loan amount of $24.8 million.The two properties have 15,000 square feet of built space and 314,290 square feet of additional air rights for a total buildable of 315,870 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $1,700 and the price per buildable square foot is $80 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 signatory for Madison Capital was J. Joseph Jacobson . The signatory for Northeast Bank was Brian R. Doherty .

Jack Guttman sold 688 Court Street and 702 Court Street, Red Hook, Brooklyn for $45 million to Madison Capital on June 08, 2021.

The property

The industrial building in Red Hook has 15,000 square feet of built space and 314,290 square feet of additional air rights for a total buildable of 315,870 square feet according to a PincusCo analysis of city data. The parcel has frontage of 450 feet and is 515 feet deep with a total lot size of 157,935 square feet. The lot is irregular. The zoning is M3-1 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $6 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received $2,000 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 neighborhood

In Red Hook, The bulk, or 40 percent of the 11.8 million square feet of commercial built space are industrial buildings, with specialty buildings next occupying 24 percent of the space. In sales, Red Hook has near average sales volume among other neighborhoods with $267.2 million in sales volume in the last two years and is the 26th highest in Brooklyn. For development, Red Hook has had very little major development activity relative to other neighborhoods.It had 1.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 10 percent of the neighborhood’s built space.

The block

On the tax block of 688 Court Street, PincusCo has identified the owners of four of the five commercial properties representing 89,163 square feet of the 96,222 square feet. The largest owner is Madison Capital, followed by Forkosh Development Group and then RXR Realty.
There are no active new building construction projects on this tax block.

All properties are industrial.

The borrower

The PincusCo database currently indicates that Madison Capital owned at least 11 commercial properties in New York City with 1,461,217 square feet and a city-determined market value of $264.7 million. (Market value is typically about 50% of actual value.) The portfolio has $385.4 million in debt, with top three lenders as JPMorgan Chase, Blackstone Mortgage Trust, and Societe Generale respectively. Within the portfolio, the bulk, or 81 percent of the 1,461,217 square feet of built space are industrial properties, with retail properties next occupying 13 percent of the space. The bulk, or 90 percent of the built space, is in Brooklyn, with Manhattan next at 10 percent of the space.

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