M
adison Realty Capital has recently acquired 4452 Broadway for $26.5 million via a bankruptcy sale from HAP Investments. This transaction was made public on Wednesday. Neither company has commented on this deal yet.
Hilco Real Estate had announced in February that the Washington Heights site was going up for bankruptcy sale. At the time, the property was valued at $56 million but was only halfway completed.
The story dates back to 2013 when Eran Polack's HAP acquired the site for $7.3 million. The company had plans for a 134,000 square foot building, including 11,000 square feet of retail space and 129 apartments, with 30% of them designated as affordable housing. Two years later, HAP decided to go even bigger and filed for a 16-story, 241-unit building.
However, local residents were not pleased with the increasing height of the proposal. The previous site owner had also wanted to build tall buildings, but the longshot of a rezoning led to the site's sale to HAP, which seemed to plan to build as-of-right.
In 2019, Madison Realty entered the picture, providing a $52.5 million construction loan to replace existing debt and cover construction costs. HAP was aiming to complete the project in the third quarter of 2020.
Despite these efforts, HAP never finished the project, likely due to factors such as the pandemic. As of September 2022, only a building shell remains on the site. This presents an interesting dilemma for Madison Realty, as they must decide whether to move forward with the approved development or start from scratch.
Last month, Madison Realty sold a Cobble Hill site to Rockrose for $65 million. This site was once part of a grand plan to redevelop the former Long Island College Hospital campus.
In summary, Madison Realty Capital has acquired 4452 Broadway for $26.5 million via a bankruptcy sale from HAP Investments. The Washington Heights site was sold due to financial difficulties, and now Madison Realty must decide whether to continue with the existing plans or start anew.
