Madison Realty Capital Provides $35 Million Mezzanine Loan for 611 West 56th Street Condominium Development in Hell’s Kitchen
Part of Overall $155 Million Financing Package Provided by MRC and Apollo Global Management for Planned 35 Story Condo Tower at 56th Street and Eleventh Avenue
First New York City Project Designed by Renowned Architect Álvaro Siza
NEW YORK, April 25, 2018 (GLOBE NEWSWIRE) — Madison Realty Capital (MRC) provided a $35 million mezzanine loan to co-developers Sumaida + Khurana and LENY for a new condominium tower located at 611 West 56th Street in the Hell’s Kitchen neighborhood of Manhattan. The funding is part of a $155 million construction financing package for the project provided by MRC and an investment fund managed by Apollo Global Management.
Located in the evolving Hudson West neighborhood, 611 West 56th Street will stand 35 stories in height, encompass 163,329 square feet and feature 83 residences, ranging from one-bedrooms to expansive penthouses. The condominium will also feature a significant amount of outdoor space, including a landscaped roof garden and sun deck, as well as numerous private terraces for the residents. Residents will also have access to a state of the art fitness center, children’s playroom and an entertaining space to host private events.
“We’re pleased to play an important role in providing the financing solution for this high-profile development in Manhattan,” said Josh Zegen, Co-Founder and Managing Principal of MRC. “We continue to be successful in meeting the needs of borrowers at all stages of the development process, from predevelopment to construction to sellout or stabilization. In this case, the sponsor has invested substantial equity into the project, and we’re involved at an attractive basis in a well-located project with an experienced team behind it.”
The building is being designed by Pritzker Prize-winning architect Álvaro Siza and represents his first foray into the U.S. market, a major milestone for the renowned Portuguese architect. Siza is one of the world’s most celebrated and decorated architects, designing such iconic structures like the Boa Nova Tea House and Piscinas de Marés in Portugal as well as recently commissioned projects in China, South Korea, Spain, Argentina, Brazil and the Netherlands. IA award-winning architects, Michael Gabellini and Kimberly Sheppard will collaborate with Siza on the 611 West 56th Street building’s interiors and SLCE Architects will serve as the Architect of Record.
The 611 West 56th Street development team has significant previous experience in ground-up residential projects. Sumaida + Khurana is a New York-based development firm focused on developing seminal buildings throughout the city and commissioning the world’s most renowned, contemporary architects to design them. One of the firm’s notable projects, 152 Elizabeth, is rapidly approaching completion and is the first building in New York by Japanese master architect Tadao Ando.
New York-based firm LENY has been responsible for the development of millions of square feet of residential projects around the world. The firm specializes in bringing to market high-end condominium buildings in premium locations and is currently focusing its efforts in New York City. 611 West 56th Street will be one of four projects the firm is developing, including 534 West 29th Street and the Berry Portfolio in Williamsburg as well as serving as one of the equity partners at 277 Fifth Avenue. LENY is collectively developing over half a million square feet in New York City.
Adi Chugh of Maverick Capital Partners arranged the financing in the transaction. Sales at 611 West 56th Street are slated to begin in Spring 2019 and Leonard Steinberg, Debra LaChance, and Justin D’Adamo at Compass will lead the marketing efforts.
About Madison Realty Capital (MRC)
MRC is a New York-based real estate investment firm that pursues real estate equity and debt investments in the middle market. Founded in 2004, MRC has invested in approximately $7.0 billion of transactions in the multifamily, retail, office, industrial and hotel sectors.