Madison Realty Capital Loans $54M To Restart Lower East Side Condo Project
A condo development that sputtered to a halt before the steel frame could even be completed is getting a second life.
New Empire Real Estate Development purchased 208 Delancey St., at the terminus of the Williamsburg Bridge on the Lower East Side, from a group of investors called Delancey Bridge Tower, and will start the project anew with the help of Madison Realty Capital, Commercial Observer reports.
New Empire purchased the property in December for $30M from Delancey Bridge Tower, partially funded by a $15M acquisition loan from MRC. This week, MRC gave New Empire a construction loan worth $39M, bringing the developer's debt obligation with MRC up to $54M total.
New Empire will partially demolish the unfinished steel frame at the site to accommodate an altered design that will total 85K SF and 69 units. The project hopes to capitalize on the neighborhood's gradual transformation from a low-income housing haven to a hip enclave, driven by myriad transit options and proximity to the Financial District and Brooklyn.
Though MRC has been known to give construction loans to luxury projects, it was rumored in the summer to be taking a hard look at lending for distressed commercial projects. As the steel frame can attest, 208 Delancey fits the bill.