NEW YORK — Madison Realty Capital, a vertically integrated real estate private equity firm focused on debt and equity investment strategies, announced today that it has upsized its initial bridge loan to a total commitment of $115 million for a construction loan to a joint venture between Harridge Development Group, Silverpeak Real Estate Partners and Urban Green Investments. The loan is a modification and upsize of a $34 million loan originated by Madison Realty Capital in 2022 and will be used for the conversion of a mixed-use property located at 3240 Wilshire Boulevard and an adjacent ground-up mid-rise multifamily development at 684 New Hampshire Avenue in Los Angeles, California consisting of a total 277 apartment units and more than 30,500 square feet of retail space. The borrower group has secured all approvals to redevelop the Wilshire Boulevard site for residential and retail use and has invested significant equity in the transaction.
Josh Zegen, Managing Principal and Co-Founder of Madison Realty Capital, said “Los Angeles’ Koreatown neighborhood is extremely well-located and vibrant, sitting at the intersection of the city’s entertainment, nightlife and residential neighborhoods. The area has continued to grow rapidly as the LA Metro Purple Line Extension has expanded. We are pleased to further our long-term relationship with Harridge Development and Silverpeak Real Estate and continue to serve as a single source of financing to provide a flexible solution for a highly sophisticated sponsorship group that has already completed all necessary approvals for the development.”
Previously home to luxury department store I. Magnin & Company, the property at 3240 Wilshire Boulevard will be converted into 107 one-bedroom loft apartments with 29,632 square feet of retail space. The neighboring mid-rise multifamily development will consist of 170 apartment units ranging from studios to two-bedrooms and include 943 square feet of retail space and 256 below ground parking spaces. Each property will offer an expansive lobby, bike storage, leasing office, resident lounge, fitness center, mail room, co-working space, recreation room, storage and a rooftop with a pool, spa, fire pits and BBQ. The properties are located close to LA Metro Rail’s Wilshire/Vermont subway station providing easy connection for residents to Downtown LA.
The transaction marks Madison Realty Capital and Harridge Development’s seventh project together in Greater Los Angeles.
About Madison Realty Capital
Madison Realty Capital is a vertically integrated real estate private equity firm that, as of June 30, 2023, manages $11.6 billion in assets on behalf of a global institutional investor base. Since 2004, Madison Realty Capital has completed over $24 billion of real estate transactions, largely through direct lending to borrowers with flexible and highly customized financing solutions. Madison Realty Capital’s strong underwriting capabilities provide certainty of execution in complex, time-sensitive situations. Headquartered in New York City, with offices in Los Angeles, Dallas, and Israel, the firm has 75 employees across its real estate investment, asset management, and development disciplines. Madison Realty Capital has been named to Commercial Observer’s prestigious “Power 100” list of New York City real estate players every year since 2016 and was recognized in March 2023 by PERE as the Debt Firm of the Year, North America for Fiscal Year 2022.
