Madison Realty signs $179.2M senior construction loan with Elliott for development in Greenpoint

Madison Realty Capital through the entity Dupont Street Owner 2 LLC as borrower signed a senior construction loan with lender Elliott Investment Management through the entity Ajsce 297 Debt Lender J LLC valued at $179.2 million on a parcel which has two development projects, a 279-unit project at 65 Dupont Street and a 194-unit project at 75 Dupont Street, both in Greenpoint, Brooklyn.
The deal closed on December 19, 2023 and was recorded on January 4, 2024. The prior lender was Maxim Capital Group which held debt that had an original loan amount of $40 million.

Elliott Investment Management provided a $145 million senior construction loan to MAG Partners earlier this year in Chelsea.

It was not immediately clear if the loan was to finance one or both of the projects. Madison Realty Capital did not immediately respond to a request for comment.
The signatory for Madison Realty Capital was Brian Shatz. The signatory for Elliott Investment Management was David Glanzman.

There are two active new building projects on the tax lot, Job number 321805828, which is a 279-unit, 219,520-square-foot development at 65 Dupont Street and Job number 321805855, which is a 194-unit, 160,107-square-foot development at 75 Dupont Street.

Yimby reported a year ago that excavation was set to start.

The property

The most recent loan totaled $40 million and was provided by Maxim Capital Group on July 21, 2023.

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 $13,125 in ECB penalties and $8,125 in OATH penalties in the last year.

The neighborhood

In Greenpoint, The bulk, or 29 percent of the 23.7 million square feet of commercial built space are walkup buildings, with industrial buildings next occupying 25 percent of the space. In sales, Greenpoint has 1.9 times the average sales volume among other neighborhoods with $614.5 million in sales volume in the last two years and is the 9th highest in Brooklyn. For development, Greenpoint has 2.2 times the average amount of major developments relative to other neighborhoods and is the 7th highest in Brooklyn. It had 2.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 9 percent of the neighborhood’s built space.

The block

On the tax block of 65 Dupont Street, PincusCo has identified the owners of 20 of the 23 commercial properties representing 188,135 square feet of the 197,431 square feet. The largest owner is Yehuda Yaloz, followed by Watermark Capital Group and then Steve Goldman (230 Java).
On the tax block, there were three new building construction projects totaling 270,639 square feet.

The majority, or 34 percent of the 197,431 square feet of built space are industrial buildings, with development buildings next occupying 28 percent of the space.

The borrower

The PincusCo database currently indicates that Madison Realty Capital owned at least 63 commercial properties with 2,654 residential units in New York City with 2,793,310 square feet and a city-determined market value of $381 million. (Market value is typically about 50% of actual value.) The portfolio has $1.2 billion in debt, with top three lenders as Signature Bank, MF1 Capital, and Athene Annuity And Life Company respectively. Within the portfolio, the bulk, or 75 percent of the 2,793,310 square feet of built space are elevator properties, with walkup properties next occupying 13 percent of the space. The bulk, or 38 percent of the built space, is in Queens, with Brooklyn next at 32 percent of the space.

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