J
ack Klugmann, a New Jersey-based developer with Accurate Builders and Developers, has managed to hold onto his sprawling portfolio despite facing numerous foreclosure threats from Madison Realty Capital. Klugmann claims he has resolved the situation by restructuring or selling some of his properties to Madison Realty.

    One property he retained is the site of the former Newark Bears stadium, where he plans to build 4,200 apartments over several phases. The project secured a $395 million loan in 2021 from Madison Realty, which also refinanced additional rental properties in Klugmann's portfolio. However, Madison Realty initiated a foreclosure on the equity interests in the Newark site, but an auction was cancelled, possibly due to a deal being reached.

    Klugmann restructured loans for several of his properties, including those in Clifton and Cedar Grove, which also faced foreclosure by Madison Realty. He now claims he is no longer facing any foreclosure threats. When asked about the restructuring or asset sales, Klugmann declined to provide further details, stating that he has a good relationship with Madison Realty.

    Madison Realty Capital, led by Josh Zegen and Brian Shatz, is known for its aggressive approach in financing risky projects. The firm recently raised over $2 billion for its latest debt fund and has initiated foreclosures on several high-profile projects, including one against Joe Chetrit's 1,300-unit apartment project in Manhattan.