Madison International Realty Increases Stake in Chrysler Building

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Nov 09, 2010, 09:35 ET

NEW YORK, Nov. 9, 2010 /PRNewswire/ -- Madison International Realty, a real estate investment firm that provides liquidity to holders of illiquid positions in core properties, has acquired additional partnership interests in the Chrysler East Building for approximately $10 million, increasing its stake to 48.9% from 38.5% in the trophy Manhattan office tower, the firm announced. Madison now has total invested capital of $55 million in the 745,410-square-foot building.

Madison has been an investor in the Chrysler East Building, located at 666 Third Avenue in New York City, since 2008. It acquired its ownership interest through a closed-end fund sponsored by Commerzbank, which raised $107 million of equity in 2002 to acquire a joint venture interest in partnership with Tishman Speyer.

Madison provides equity capital to real estate owners and investors seeking to de-lever their properties, to provide an exit strategy for their existing investors, or who wish to monetize a portion of their ownership position while still maintaining control. The firm invests only in secondary transactions as principals on behalf of its private equity funds.

"Madison is the leading liquidity provider to real estate investors worldwide. The exit strategies we create for existing investors have become particularly attractive in today's market as holding periods have elongated," said Ronald Dickerman, Madison founder and president. "We are also seeing an enhanced need to amortize maturing debt with equity, restructure or recapitalize, or to sell a minority ownership position so investors can monetize some of the value in their properties or portfolios."

With more than $1 billion in capital commitments, Madison focuses solely on existing core quality properties and portfolios in the U.S., U.K. and Western Europe. The firm does not invest in new development or properties for sale. Madison portfolio investments have included the Seagram Building at 375 Park Avenue, the Colgate-Palmolive Building at 300 Park Avenue, and 520 Madison Avenue in New York City; Garden City Plaza on Long Island; One and Two Shell Plaza, Houston; and Devonshire House, London.

About Madison International Realty

Madison International Realty (www.madisonint.com) is a leading liquidity provider to real estate investors worldwide. Madison provides joint venture and preferred equity capital for real estate owners and investors that are looking to de-lever their properties; seek an exit strategy; or where existing sponsors seek to sell a portion of their ownership position. The firm provides equity for recapitalizations, partner buyouts and capital infusions; and acquires joint venture, limited partner and co-investment interests as principals. With $1 billion in capital commitments, Madison invests only in secondary transactions and focuses solely on existing properties and portfolios in the U.S., U.K., and Western Europe. Founded in 1996, the firm has offices in New York, London and Frankfurt, Germany.

SOURCE Madison International Realty