MRC to Initiate Capital Improvement Plan to Renovate Prominent 503,000 SF Mixed-Use Property in Desirable Queens Neighborhood

Madison Realty Capital (MRC), an institutionally-backed real estate private equity firm focused on middle market real estate equity and debt investments, announced the acquisition of Saxon Hall, a 503,000 square-foot mixed-use building with 419 residential rental units, 3,842 square feet of commercial space and a full-service parking garage with over 200 parking spaces located at 62-60 99th Street in Rego Park, Queens.

In partnership with Arel Capital, MRC purchased Saxon Hall in an off-market deal from Treetop Development for $135.5 million, representing one of the largest investment sales transactions in Queens to date in 2016.Rego Park has rapidly become an attractive and more affordable alternative to other submarkets of Queens, Brooklyn, and Manhattan.

MRC plans to pursue a comprehensive capital improvement program for the property, including renovating and reconfiguring residential units,improving operating efficiencies and curb appeal, as well as enhancing and expanding the amenity package.

“Our acquisition of Saxon Hall illustrates our ability to utilizelocal market knowledge to identify attractive investment opportunities in emerging neighborhoods,” noted Josh Zegen, Co-Founder and Managing Principal of MRC.“Rising rents in other city submarkets have increased the appeal of Rego Park over the last few years. We have been following this neighborhood trend for some time, having served as a lender on other properties in the area such as Millennium 99 and Tuhsur Development’s condominium project.Saxon Hall is a unique property with great long-term potential, and we seized the opportunity to acquire it when the investment became available. We are thrilled to close the acquisition and look forward to implementing our capital improvement plan, which we believe will add substantial value and enhance the resident experience.”

The residential unit mix of Saxon Hall includes one-, two- and three-bedroom units, as well as a large penthouse apartment. The commercial space consists of two office suites on the ground floor, currently occupied by medical office tenants.The existing amenity package offers storage space, two large laundry rooms, bicycle storage, a pet spa, a fitness center, and a large playground.

The immediate area surrounding Saxon Hall includes a number of prominent retailers including Costco, Century 21, Bed Bath & Beyond, Sears, and Old Navy. Queens Center Mall, which is the largest mall in Queens, is also within close proximity to the Property. The 63rd Drive subway stop, serviced by the M and R subway lines, is approximately 4 blocks from the Property.

Steven Vegh of Westwood Capital brokered the transaction. Adam Doneger, Adam Spies, Jean Celestin and Dan O'Brien of Eastdil Secured arranged Arel Capital’s equity investment in the property. Meridian Capital advised on the financing.

About Madison Realty Capital (MRC)

MRC is a New York-based real estate investment firm that pursues real estate equity and debt investments in the middle market. Founded in 2004, MRC has invested in approximately $4.5 billion of transactions in the multifamily, retail, office, industrial and hotel sectors.

About Arel Capital

Arel Capital is based in New York and was founded in 2013 to invest in real estate assets, with an emphasis on mid-sized ($50 to $200 mm) multi-family residential properties in large urban US markets. Since its inception, the firm has invested in about $1.25 billion of transactions in four markets (New York, Denver, Houston and Austin).