Madison Realty locks down more than $600m for real estate debt

The firm has received a commitment from the Texas Municipal Retirement System.

Madison Realty Capital’s fourth real estate debt fund has now amassed $608.07 million, according to Securities and Exchange Commission filings.

The New York-based commercial real estate investor continues to seek a total of $1 billion in capital for Madison Realty Capital Debt Fund IV. The firm’s previous close was on $554.08 million in March, regulatory filings show. The Texas Municipal Retirement System has committed $100 million to Fund IV.

MRC, which could not be reached for comment, invests in senior secured loans, mezzanine debt and preferred equity investments for acquisition financing or refinancing of commercial real estate. It also invests in non-performing loans and preferred equity investments for lenders and investors hoping to deleverage.

The firm’s predecessor vehicle, Fund III, raised $695 million, drawing capital from public and private pension funds, foundations and endowments, family offices and wealth managers, according to a statement at the time. Among those were the New York State Teachers’ Retirement System ($40 million), the Oregon Public Employees’ Retirement System ($150 million) and New Mexico Public Employees’ Retirement Association ($50 million).

Led by Josh Zegen and Brian Shatz, MRC specialises in real estate equity and debt investments in the mid-market. The firm has also completed a fundraise in Israel, where it raised $200 million for real estate debt, according to a recent news report.

MRC has notched more than $7 billion of real estate debt and equity transactions in the multifamily, retail, office, and industrial sectors and has closed more than $1 billion in transactions across nine municipal regions in 2018 thus far, according to the asset manager’s website.