Madison Realty Capital - A Private Commercial Lender

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January 21, 2008

New York-based bridge lender Madison Realty Capital sees opportunities to target distressed debt investments. “We believe there are very attractive opportunities in distressed debt,” said Josh Zegen, managing partner. He cited potential opportunities such as value-added deals where the operators’ execution plan may not have come through as expected and need to refinance ballooning debt.

The firm, which specializes in short-term senior, secured bridge loans, is also talking to European investors who might be interested in investing in U.S. commercial real estate deals. “There are a lot of investors located in London and we have found that this market is a great source of equity capital for a fund,” Zegen said, noting that the firm is planning to speak with dedicated real estate investors as well as asset-based lending specialists.

Over the past few months the firm has been able to be more selective as the number of opportunities that it is seeing is rising. Zegen said that although the firm makes loans of one to three years, Madison prefers to make loans of about one year. This allows it to predict more accurately what kind of market the borrower will be encountering when it is time for the loan to be refinanced, he explained.

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