Madison Realty Capital flipped a building at the center of a botched condominium conversion yesterday, picking up a $13 million profit in the process.
The property, holding 84 incomplete and unsold units, at 45 John Street in Downtown Manhattan had been in default for about five years. Madison Realty Capital bought it out for $47 million in November, then unloaded it for $60 million four months later. Investor Chaim Miller and his partners acquired the property after Madison Realty lent them a $45 million short-term bridge loan.
“We were able to realize a quick gain and at the same time place a nice bridge loan that will earn us significant returns as well,” Madison Realty co-founder Josh Zegen told Crain’s.
Back in 2009, buyers were told they could rescind their contracts after the lender, Bayerische Landesbank, filed suit to foreclose on $51.7 million in defaulted loans at the condo conversion, as The Real Deal reported. [Crain’s] — Mark Maurer