NEW YORK, July 22, 2014 /PRNewswire/ -- Madison Realty Capital (MRC), an institutionally backed real estate private equity firm focused on real estate equity and debt investments in the middle markets, announced the acquisition of 2053 Frederick Douglass Boulevard and 300 West 112th Street, two 5-story mixed-use elevator buildings located in a thriving area of Harlem, in partnership with RWN Real Estate Partners LLC (RWN) for $30 million in an off-market transaction. Together, the two adjacent buildings on Frederick Douglas Boulevard between 111th and 112th Streets comprise 55,000 square feet, including 50 residential units and two retail units totaling approximately 3,750 square feet, and offer 30,000 square feet of additional residential development rights. Josh Zegen, Co-Founder and Managing Principal of MRC and Ari Shalam, Managing Principal of RWN jointly made the announcement.
"Frederick Douglass Boulevard has seen tremendous growth and revitalization over the past several years. Redevelopment and expansion of the residential stock, combined with the growth of an appealing mix of restaurants and retail, has transformed the neighborhood. Recently the area has seen an influx of families and young professionals seeking alternatives to the Upper West Side, without sacrificing proximity to Central Park or the unique residential feel of Upper Manhattan," said Mr. Zegen.
Mr. Shalam added, "Given those dynamics, we see considerable untapped demand for high-quality residential projects on Frederick Douglass Boulevard, particularly at the southern end near Central Park. The properties we acquired have significant unused development rights, which provide the opportunity for further residential development. The retail market in this neighborhood is also seeing strong growth."
MRC and RWN will seek to add value to both 2053 Frederick Douglass Boulevard and 300 West 112th Street through the renovation of existing apartments to maximize rents, lease-up of vacant units and the potential future development of 30,000 square feet of unused development rights. Earlier this year, MRC acquired another property located one block north on Frederick Douglass Boulevard. 2094-2104 Frederick Douglass Boulevard, which MRC purchased for $7.25 million, is an 11,254 square-foot retail condominium unit within the Gateway Tower luxury residential condominium development. The property is currently occupied by several long-term tenants, and offers strong in-place cash flow as well as significant upside potential given the increasing popularity of the neighborhood.
NGKF Capital Markets, led by Steven Schultz and Josh Malka, represented both parties in both off-market transactions.
About Madison Realty Capital (MRC)
MRC is a New York-based real estate private equity firm and asset management company that pursues real estate equity and debt investments in the middle market. Founded in 2004, MRC has invested in approximately $2.5 billion of transactions in the multifamily, retail, office and industrial sectors.
About RWN Real Estate Partners (RWN)
RWN Real Estate Partners LLC is the middle market real estate private equity arm of RWN Management, LLC a New York based private investment manager. Led by Ari M. Shalam, RWN Real Estate Partners LLC has in excess of $200mm of committed equity capital under management. Its mandate targets joint venture and direct real estate investment opportunities, focusing on most property types in the New York City marketplace.
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