CIT Group Inc. announced CIT Real Estate Finance served as sole lead arranger for a $65 million senior secured construction loan for MC 19 East Houston LLC, a joint venture between Madison Capital and Vornado Realty Trust, two real estate industry leaders. The proceeds of the facility will be used to finance the acquisition and construction of a 34,170-square-foot six-story retail and office building located on the southeast corner of Broadway and Houston Street in SoHo. The property will include a total of 11,419 square feet of retail located on the ground floor, second floor and lower level and 22,751 square feet of office space on the third through sixth floors, as well as terraces for use by the building’s office tenants. Financing was provided by CIT Bank, N.A., the principal bank subsidiary of CIT. Terms of the transaction were not disclosed.
Richard Wagman, Managing Partner, Madison Capital, said, “The property is located on the last developable site at a prime intersection at the gateway to SoHo, one of New York’s premier retail corridors and mixed-use districts. CIT’s familiarity with the New York real estate market and commercial real estate finance expertise were essential to the efficient execution and successful completion of this transaction.”
The superior location and extraordinary exposure, combined with a landmark design, presents potential retailers with an unparalleled global branding and marketing opportunity.
Matt Galligan, President, CIT Real Estate Finance, said, “New York City’s retail market continues to emerge as the preeminent shopping destination in the world. SoHo in particular is a top-tier destination for high-end retailers and international brands seeking to establish flagship locations in New York City. At the same time, the overall New York City office market remains strong, with growing industries, such as technology and media, leasing large blocks of space and fueling continued development.”
Meggan Walsh, Deputy Group Head and Managing Director, CIT Real Estate Finance, said, “This transaction represented a great opportunity to work with two elite clients to finance the construction of a prominent office and retail building. Madison Capital has unique investment and operating experience within urban retail and mixed-use real estate assets. Vornado Realty Trust has an extraordinary portfolio with a focused strategy of growing its presence in New York City and Washington, DC. We look forward to building upon our financing relationships with both Madison and Vornado.”
Madison Capital is a leading real estate investment and operating company focused on acquiring and repositioning exceptional urban retail and mixed-use assets in dynamic markets including New York and other gateway cities. Targeting income-producing and value-add opportunities in interesting, evolving neighborhoods, the firm employs a focused and disciplined approach to its investments. Madison Capital owns and manages over $2.4 billion of mixed-use assets. For more information, please visit the firm’s website at mcapny.com
Vornado is a fully integrated, publicly traded, real estate investment trust with a total market capitalization in excess of $30 billion. It is a member of the S&P 500 Index and one of the largest publicly traded REITs in the United States.