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Madison Realty Capital Sells Sheepshead Bay Condominium Units for $24.5M

January 24, 2014

Madison Realty Capital (MRC), an institutionally backed commercial real estate investment firm and asset manager, announced the sale of 49 condominium units totaling 64,561 net sellable square feet and 43 parking spaces at a development in Sheepshead Bay , Brooklyn for $24.5 million , resulting in a significant return on MRC's initial investment. According to a release, the sale was completed by a debtor in Chapter 11 bankruptcy pursuant to a plan of reorganization. MRC was a secured creditor in the bankruptcy proceedings. MRC said it took control of the Breakers at Sheepshead Bay project, located at 3112-3144 Emmons Avenue in Brooklyn, N.Y. , in December 2012 through the acquisition of a non-performing loan, after the original lender had commenced foreclosure and the borrower had filed Chapter 11 bankruptcy proceedings. The sale announced brings MRC's investment in the property to a successful conclusion, within 12 months of the original transaction. Josh Zegen , Co- Founder and Managing Member of MRC, made the announcement. "We're particularly proud to announce the disposition of the Breakers at Sheepshead Bay property," Zegen said. "MRC had the opportunity in this complex deal to exercise every element of our fully integrated platform. Our bankruptcy and restructuring expertise was at the forefront, given that we entered the deal after the borrower filed Chapter 11. We navigated the challenges of acquiring the defaulted loan and then improving and renovating this property to maximize its value, all within the bankruptcy framework. This sale, completed pursuant to a contested and confirmed Chapter 11 plan, is a testament to MRC's ability to bring multi-dimensional real estate and financial expertise to bear on a troubled asset and successfully turn it around." ((Comments on this story may be sent to ))

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