Madison Realty Capital has provided $106 million in construction financing to Arch Companies and AB Capstone for the ground-up development of Myrtle Point, the developers’ 284,000-square-foot, mixed-use project at 3-50 St. Nicholas Avenue along the border of Bushwick, Brooklyn and Ridgewood, Queens.
The 17-story development, which sits on an acre of land, will comprise a four-story commercial base topped with a 13-story residential tower. When completed, it will be the tallest building in the Ridgewood area.
“We are pleased to provide a $106 million loan to an experienced sponsorship team, whom we know well, while contributing to the growth of this vibrant neighborhood,” Josh Zegen, managing principal and co-founder of Madison Realty Capital, said. “We are excited about this project, given its accessibility to public transportation options and high-quality retailers. The transaction represents our ability to leverage our familiarity with the needs of our repeat borrowers to efficiently create customized financing solutions.”
Easily accessible via public transportation, the property sits adjacent to the Myrtle-Wyckoff Avenue L/M subway stop. It will comprise 130,000 square feet of commercial retail space, leased to “two big-box credit retailers” who couldn’t immediately be named, and 133 residential units. The residential component will include a 30 percent affordable component.
Myrtle Point is Arch’s third ground-up development in New York City since the firm’s inception in 2017. It follows 11 Greene, the company’s 66,000-square-foot, luxury rental building in SoHo; and 550 Metropolitan, a boutique residential and retail development in the Williamsburg neighborhood of Brooklyn.
Arch’s portfolio — which includes more than 3,000 multifamily units — now spans nine states and totals 3.4 million square feet.
“Arch brings a holistic, hands-on, and vertically integrated approach to development projects that will deliver value to both the community and our investors,” says Jeffrey Simpson, managing partner and co-founder of Arch Companies. “Arch is a firm believer in New York, especially burgeoning outer boroughs neighborhoods like Ridgewood. Ridgewood is an exciting, dynamic neighborhood that has seen an influx of new residents in recent years and is primed for growth as a natural extension of the highly active Williamsburg and Bushwick markets.”
“Myrtle Point represented an exciting investment opportunity to continue growing our New York portfolio at an attractive basis and the ability to enter a deal where we could help drive value with our deep market and development knowledge,” Jared Chassen, partner and co-founder of Arch Companies, added. “Arch has significant dry powder, which it has been deploying to take advantage of recent market shifts and strategic situations, including successfully entering and exiting three recent hotel investments.”
It’s been a busy couple of weeks for Madison Realty Capital. The firm financed Toby Moskovits’ 150-unit multifamily project in the Sunset Park neighborhood of Brooklyn with a $53 million construction loan, and also provided a $74 million loan for a New Jersey multifamily, industrial and retail portfolio.
By: CATHY CUNNINGHAM