Madison Realty provides loan-on-loan to Northwind for its $313M Fortress financing in FiDi

Madison Realty Capital provided a loan-on-loan to Northwind Group, which originated a $313 million land loan and construction loan to Fortress Investment Group as part of the recapitalization to restart construction on the stalled 273-unit condominium project at 125 Greenwich Street in the Financial District in Manhattan. Fortress took control of the development from Bizzi & Partners, which along with U.S. Immigration Fund, remain in the project, in a deed transfer valued at $598.2 million.

The Real Deal reported February 1 on Northwind Group’s purchase and the $313 million loan, and on February 2 Northwind Group distributed a press release about the financing, but Madison Realty Capital’s participation in the financing has not been previously reported. Madison Realty Capital is among the largest and most active real estate investment firms in the city.

In a loan-on-loan financing, one lender, in this case Madison Realty Capital through the entity 125 Greenwich Street Lender LLC, provides a loan to the originator of the loan, in this case Northwind Group through the entity NW 125 G Lender LLC, which provided the financing to Fortress Investment Group.

The deal closed on January 31, 2023 and was recorded on February 16, 2023. On the lot, there is one active new building construction project for a 273-unit, 358,388 square-foot residential (R-2) building.

The property

The parcel has frontage of 82 feet and is 119 feet deep with a total lot size of 9,086 square feet. The lot is irregular. The zoning is C5-5 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $80 million. The most recent loan totaled $313 million and was provided by Northwind Group on January 31, 2023.

Development

On the lot, there is one active new building construction project for a 273-unit, 358,388 square-foot R-2 building. The project was submitted by Bizzi & Partners and filed by Steven Dellasalla with plans filed June 5, 2012 and permitted August 8, 2017. On the tax lot, the most recent condominium plan was filed by VS 125 LLC to create 275 residential units in a building at 125 Greenwich Street in Financial District, Manhattan, called 125 Greenwich Condominiumt hat has a $856.2 million sellout, according to an November 13, 2015 submission to the New York State Attorney General.

The block

On this tax block, PincusCo has identified the owners of two of the five commercial properties representing 637,540 square feet of the 1,402,317 square feet. The two identified owners are Fortress Investment Group and Yucaipa Companies.
On the tax block, there were two new building construction projects totaling 608,621 square feet. The largest is a 273-unit, 358,388 square-foot residential (R-2) building submitted by Bizzi & Partners and filed by Steven Dellasalla with plans filed June 5, 2012 and permitted August 8, 2017. The second largest is a 250,233 square-foot business (B) building submitted by Tishman Speyer and filed by Richard Gladstone with plans filed August 29, 2014 and permitted December 13, 2017.

The majority, or 62 percent of the 1.4 million square feet of built space are office buildings, with elevator buildings next occupying 33 percent of the space.

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