Madison Realty Capital Throws Billionaires' Row Supertall A Lifeline With $90M Investment
Plans for one of the city’s tallest condominium towers are reportedly back on track, following a $90M financial reprieve.
Madison Realty Capital is providing a $90M cash injection to 111 West 57th St., Crain’s New York Business reports. The building — which is being developed by JDS Development Group and Property Markets Group — is slated to sky to more than 1,400 feet.
Last year, the project went into foreclosure when Spruce Capital Partners, a mezzanine lender on the project, initiated proceedings after the $25M loan it held against the property defaulted. Former majority owner AmBase Corp. has tried to block the foreclosure, but its attempt was dismissed in January.
Madison Realty Capital’s funding is in the form of a preferred equity stake, Crain’s reports, and it ensures the firm will be paid before the other partners are able to regain their investment. This new ownership arrangement gives Madison an ownership stake with Spruce Capital Partners. Property Markets Group and JDS will both once again have an interest, and JDS will continue to run construction on the building.
Representatives from JDS could not immediately be reached for comment.
Madison Realty Capital provided a $91M construction loan to JDS for its project at 514 West 24th St. in February. It also gave a $54M loan to New Empire Real Estate Development for its condo development at 208 Delancey St.