NEW YORK — Madison Realty Capital (MRC), an institutionally-backed real estate investment firm, provided a $44.0 million first mortgage loan to recapitalize a student housing development located at 350 East 10th Street in the East Village neighborhood of Manhattan. The project will address the growing demand for student housing which continues to be supply constrained.
The 110,000 SF landmarked property, located on a mid-block lot that extends from East 9th Street to East 10th Street between Avenue B and Avenue C, was originally constructed in 1906 and operated as elementary school PS 64 until its closure in the mid 1970s. The borrower first acquired the vacant asset in 1999 and has since been pursuing the entitlement and redevelopment of the property. The financing provided by MRC will retire the existing indebtedness and provide capital for pre-development.
“There is a shortage of quality student housing options in Manhattan,” said Josh Zegen, Managing Principal for MRC. “Our financing of this project will help the borrower tap into that demand and turn a vacant building into a thriving housing option for students residing in New York City. This new development will provide a brand new student living facility with contemporary amenities, right in the heart of the East Village, one of the most artistic and diverse communities in the city.”
Upon completion, the new student housing property will provide a first class housing option in the East Village. The five-story building will have various amenities (health center, fitness room, etc.) as well as collaborative outdoor spaces. The property will offer a variety of suite layouts that will address the growing demand in the marketplace.
While primarily a residential neighborhood, the East Village has been known for decades as the center of the counterculture community in New York City. The area offers residents an abundance of restaurants, shops, and nightlife choices as well as ample transportation options.