850 Third Ave

Madison Capital and Meadow Partners are pleased to announce the recapitalization of 850 Third Avenue, known as Liberty View Industrial Plaza, a 1.3 million-square-foot, mixed-use facility in the rapidly redeveloping Sunset Park neighborhood of Brooklyn, New York. Madison Capital is assuming management of the property, which has been valued overall at $300 million. First mortgage financing on the transaction was provided by Blackstone Mortgage Trust and a preferred investment was provided by Acadia Realty Trust.

The waterfront building adjacent to Industry City was redeveloped for industrial and office use through a $130 million development program by Salmar Properties, with new features including a 3.2 acre Brooklyn Grange rooftop farm, a 386-spot parking lot, a 60,000 square foot ground floor loading zone, 17 loading docks and 3 additional full drive-in docks, 18 brand-new elevators, 3 office lobbies, on-site dining, reinforced floor loads ranging from 250-500 pounds per square foot, new energy-efficient windows, new electrical and HVAC systems, a backup generator, and superior and redundant fiber optic infrastructure. The building offers one of the largest floorplates in New York City at 175,000 square feet.

“This is a premier industrial and office property, rich in history as a U.S. Naval storage facility, and with superior modern infrastructure to any other loft building in Brooklyn,” said Bryan Lisser of Madison Capital. “We look forward to continuing to work with Meadow Partners and Salmar Properties on delivering innovative office and industrial space to this dynamic market.”

Madison Capital’s plans include an active repositioning and marketing effort to re-introduce the property. For the first time there will be up to 350,000 square feet of multi-tenant office space with units as small as 10,000 square feet available at the building, and approximately 500,000 square feet of industrial space for tenants of varying size. The firm is initially pre-building 175,000 square feet of affordable industrial space and will work with the community and local elected officials to attract and support Brooklyn’s small businesses.

With vast amenities and robust in-place infrastructure, in addition to a prime location in an ascendant economic and industrial crossroads in Sunset Park, the building provides tangible benefits to companies seeking high-quality space at a competitive price-point. Economic incentives include a PILOT (Payment in Lieu of Taxes) program to significantly reduce tax exposure, credits from the NYC Relocation and Employment Assistance Program (REAP), the Industrial & Commercial Abatement Program (ICAP), and the Industrial Business Zone (IBZ), and energy management programs – all of which reduce occupancy costs and empower business growth. In offering aggressive market economics and tenant improvement allowances, Madison Capital stands to attract a diverse tenant base to the building and further the story of this exceptional property.

About Madison Capital

Madison Capital is a leading real estate investment and operating company focused on creating exceptional opportunities in evolving markets. Targeting income-producing, opportunistic and value-add opportunities in New York, San Francisco, Chicago, Miami and other gateway cities, the firm employs a focused and disciplined approach to its investments. Madison has grown its portfolio organically since the firm’s inception in 2002 to over $3.1 billion of current assets under management. For more information, please visit the firm’s website at mcapny.com.

About Meadow Partners

Meadow Partners is a private real estate investment firm based in New York City and London that manages a series of closed-end private equity funds and separate accounts on behalf of institutional investors. The firm specializes in middle-market transactions in all sectors and across the risk spectrum. Since inception, Meadow Partners has invested over $1.5 billion of equity and has acquired more than $5 billion of real estate assets in its target markets of New York City, Washington, D.C., London, and Paris. Meadow Capital Management LLC is registered with the SEC as a Registered Investment Adviser.