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The Continuum Company Lands a $167.5 Refinance for Madison Square Park Tower

Madison Realty Capital Arranges Financing for Borrower to Take Sales to the Finish Line
June 12, 2018
With a first mortgage in tow, privately-held developer Continuum Companies can now continue sell-up momentum at its Madison Square Tower multifamily condominium development at 41-45 E. 22nd St. in New York City, moving it that much closer to stabilization.

The Continuum Company has closed on a $167.5 million first mortgage sourced through Madison Realty Capital. Characterizing the financing as a "complex, multi-party transaction," Madison said the loan provided to Continuum Companies founder Ian Bruce Eichner resolved a dispute with previous partners.

On March 28, 2018, Eichner brought a lawsuit against his joint-venture partners, Fortress Investment Group and Dune Real Estate Partners, alleging they took moves to "intentionally delay" payouts on their pledged $343 million in construction financing. The filing kicked off a litany of responses and court appearances that ended with the suit being discontinued with prejudice on June 7.

The $167.5 million essentially functions as a debt restructuring which will allow The Continuum Company to refocus on sales efforts at the tower.

"With this transaction, we have streamlined the capital stack and provided Continuum with the flexibility needed to maintain the current sales at this one-of-a-kind development," said Josh Zegan, co-founder of Madison Realty Capital. "We’re pleased to facilitate the borrower’s business plan by providing the necessary financing."

Of Madison Square Park Tower’s 83 condo units, 58 have been sold, totaling about $400 million in value. The luxury condominium building in the city's Flatiron district is known for its unobstructed views of both the East and Hudson Rivers, garnered by a unique assemblage of air rights that allows the glass tower to reach 777 feet.

Residents living within the all-glass tower have access to five floors of amenities, including a golf simulator, terrace with outdoor grill, library and billiards room, lounge, catering kitchen and a fitness center with boxing and private training rooms.

Madison Square Tower was designed by Kohn Peterson Fox Associates, with HWA as executive architect. Frederik Eklund of Bravo TV’s Million Dollar Listing New York show leads the Eklund-Gomes team at Douglas Elliman, which is handling condo sales at Madison Square Park Tower.



Diana Bell, New York City Market Reporter  CoStar Group   
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