Madison Realty gives $63.2M loan to Sela Group on parcels it once owned

Madison Realty Capital lent $63.25 million to the Sela Group secured by parcels Madison sold to the Sela Group in 2019.

Gal Sela’s Sela Group through the entity Sela Ryerson LLC as borrower signed a loan agreement with lender Madison Realty Capital through the entity Brooklyn Queens Portfolio Lender 1 LLC valued at $63.25 million for 3 parcels, including the tax class fireproof warehouse (E1) at 29 Ryerson Street in Fort Greene and other properties at 39-35 27th Street and 256 Flushing Avenue. The deal closed on November 18, 2020 and was recorded on January 29, 2021.
The properties have 220,590 square feet of built space and available development rights.
The average loan per buildable square foot is $287.
The financing includes a $15.75 million gap loan. In addition, Madison borrowed a portion of the debt from Maxim, as evidenced by its collateral assignment of loan documents to Maxim.
The Arch Companies in August 2020 bought debt totaling $47.5 million from Maxim Credit Group, borrowing from Maxim at the time. Arch in September 2020 filed a memorandum of restrictions which claimed to give Arch a measure of control over the properties, which in turn led the Sela Group to file a lawsuit disputing that claim.  The last time the property sold was September 10, 2019, when Madison Realty Capital sold it to Sela Group for $55 million.
Over the past five years, there have been 4 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. There were 4 renovation/alteration projects (A2) applied for with a total estimated value of $1,471,000.

Direct link to Acris document. link
The signatory for the lender was Brian Shatz, co-founder of Madison Realty.