Madison Realty Capital grants MAG Partners construction loan on affordable residential building

KUALA LUMPUR, Oct 23 -- Madison Realty Capital has granted MAG Partners a US$173 million construction loan that will allow work to commence next month on a 480-unit rental residential building in Chelsea. (US$1 = RM4.14)

According to a statement, the project will be developed under the Affordable NY programme with 30 per cent of its units reserved for low and middle-income New Yorkers.

It is a joint venture between MAG Partners, Safanad, Atalaya Capital Management and Qualitas, one of the biggest asset managers in Australia.

“This marquee 480-unit multifamily rental building, located within a few blocks of Hudson Yards and other prominent tech tenant expansions on the west side, will be one of the only new multifamily rental projects built in Manhattan in the next few years,” said Madison Co-Founder and Managing Principal, Josh Zegen.

“This is an incredibly desirable location as major tech companies continue to sign big leases within walking distance, and we expect to see very strong long-term demand for this property when it opens in 2022,” said MAG Partners Founder and Chief Executive Officer, MaryAnne Gilmartin.

MAG Partners acquired the site in December 2018 via a 99-year ground-lease with Edison Properties and the development is expected to be complete in late 2022.

The construction financing was arranged by Adi Chugh of Maverick Commercial Properties, while Jeff Rosen from MAG Partners has represented ownership. The financing supports construction throughout the estimated 30-month construction period.

MAG Partners selected Rick Cook and COOKFOX, a firm that is the best and most prolific team for innovative contextual and sustainable development in New York to design the building.

-- BERNAMA