Large Condo Development Coming to Clinton Hill

Classon Avenue is soon going to become a lot busier.

A New Jersey-based investor is slated to bring a 37-unit condominium development to Clinton Hill after buying a property out of bankruptcy, The Real Deal first reported.

Commercial real estate investment firm Madison Realty Capital is providing $13 million in financing for the purchase of a defaulted note on a property at 143-159 Classon Ave., between Park and Myrtle avenues, which was previously held by Community Preservation Corporation.

The project is in various stages of completion, with 143 Classon Ave. almost finished and 159 Classon Ave. requiring significant construction work before receiving its final certificate of occupancy, Madison told The Real Deal.

Though he would not reveal the buyer's identity, Madison co-founder Josh Zegen told The Real Deal at the International Council of Shopping Centers’ annual RECon retail conference the property was sold for less than Community Preservation Corp.'s outstanding balance of approximately $17 million. 

It is also known that the investor has experience working with "distressed assets" and they swooped in to purchase the property directly after its bankruptcy status delayed any auction, Zegen told The Real Deal.

While the bankruptcy process is unpredictable, the new owner is expected to take title to the property within three to six months, Zegen said, and will begin construction to complete the condo project.