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Madison Realty Capital lands $90M to refinance 14 53rd Street

TPG Capital provided the debt

Image of 14 53rd Street before renovations (Credit: MRC)

Madison Realty Capital has secured a $90 million loan from TPG Capital to refinance 14 53rd Street in Sunset Park, according to TRD. When the office building was acquired from Harry Skydell in 2015, it was marketed as spanning 400,000 SF. Interestingly, Madison Realty’s Josh Zegen’s now measures the building at 500,000 SF.

How to grow a building — NYC style: REBNY instructs its members to measure office buildings very generously. This results in a “loss factor” of 27 percent, which means the tenant has 27 percent less usable space than advertised.

Heard at the water cooler: While brokers and architects use updated CAD [computer-aided design] drawings to grow each individual floor, many joke that measurements are reaching the middle of the street.

REBNY vs. BOMA: The REBNY method (used in New York) includes the measurements of the outer walls of the building, while ‘BOMA method A’ only measures the interior.. There are other distinctions that allow for magical growth of NYC buildings, which we will explore in the near future.

Financing Details: TPG refinanced the $59.4 million balance on the $63.2 million acquisition loan from Deutsche Bank. TPG also provided an additional $30.5 million in debt. (TRD)

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