NEW YORK — Madison Realty Capital (MRC), an institutionally-backed real estate investment firm focused on real estate equity and debt investments in the middle markets, announced the sale of 265-267 South 2nd Street, a multifamily rental property in Williamsburg, Brooklyn, for $22.4 million. MRC acquired the 6-floor, 35-unit, 22,800 square foot building for $9.7 million in April 2013 and embarked on a renovation and repositioning plan aimed at adding significant value.
“We’re pleased to announce this successful exit from one of MRC’s equity investments,” Managing Principal Josh Zegen of MRC said. “When we acquired it, this property needed modernization to improve its position in the competitive Williamsburg rental market. Our construction and asset management teams were successful in creating a modernized multifamily product that was appealing to investors. There was significant interest in the property from a variety of potential purchasers, and we were able to achieve a strong result.”
Following the initial acquisition, MRC undertook significant renovations, including new kitchens with granite countertops and stainless steel appliances, and updated bathrooms with new tile and fixtures. MRC also added recessed lighting, hardwood floors, and crown moldings in the living space, and in some instances reconfigured units to maximize space usage. Open-air terraces and ground floor outdoor spaces were created for select units.
Williamsburg continues to thrive as Brooklyn’s leading live-work-play neighborhood. Investors and developers increasingly view Williamsburg as a stable long-term play.