Josh Zegen‘s Madison Realty Capital and Nahla Capital have secured a $69 million loan from Deutsche Bank to refinance 915 West End Avenue. The rental building spans 118,591 square feet, and contains 94 apartments (approximately 41 are rent regulated).
Financing details: Madison Realty Capital paid $85.5 million for the Upper West Side property in 2016. The company secured $74.5 million in acquisition financing from KKR Real Estate Finance (KREF) at the time. KREF subsequently contributed that mortgage to a collateralized loan obligation (CLO) deal, which was issued late last year. Now, the remaining balance on the KKR debt has been assigned to Deutsche Bank
Be Smart: Challenges in destabilizing rent regulated apartments continues to reverberate… As of last year, the property recorded a negative NOI, according to CO. Madison’s plan at the time of the acquisition assumed that it would be able to deregulate the apartments, renovate them, and lease them at market rates.