Madison provides capital to owners seeking to monetize embedded equity value in their assets and portfolios in order to:
- Realize embedded gains without selling assets
- Redeploy equity capital into future opportunities
- Diversify ownership in capital intensive assets and portfolios
Through direct joint ventures with Madison, owners can monetize embedded value in their assets as an alternative to traditional sales or recapitalizations where existing debt structures may restrict liquidity options. By partnering with Madison, owners can generate liquidity while maintaining operating and management control over their properties and portfolios.
Forest City Retail Portfolio
TRANSACTION SUMMARY: Madison acquired a 49.0% equity interest in 15 core retail properties in and around New York City. The portfolio contains 2.6 million square feet of retail space located in Manhattan, Brooklyn, Queens, The Bronx, Staten Island, and Hudson County, NJ. The sponsor, Forest City Enterprises, Inc., sought to monetize a portion of its embedded equity to generate liquidity on its balance sheet and position the company for future growth. Bringing on Madison as a medium term joint venture partner allowed the sponsor to monetize equity while also maintaining maximum flexibility for their longer term ownership plan for the portfolio.