Madison Realty Capital, a vertically integrated real estate private equity firm focused on debt and equity investment strategies, and Newbond Holdings, a vertically integrated real estate investment and operating platform founded by Neil Luthra and Vann Avedisian, have launched Madison Newbond, an institutional lending platform that will provide first mortgages, mezzanine loans and preferred equity to hotel owners and developers nationwide. The partnership launched with approximately $500 million of initial lending capacity and will add scale in line with the opportunity.
Madison Newbond will build on Madison Realty Capital’s institutional lending platform and deep relationships as well as Newbond’s hospitality industry expertise and strong operational knowledge, according to the companies. The partnership will offer unique financing programs to new and existing borrowers across the hospitality spectrum from limited-service hotels to ultra-luxury resorts and will target opportunities including transitional lending and ground up developments across major metropolitan markets.
“The hospitality industry has experienced significant disruption throughout the pandemic and there is a clear need for creative and flexible lending solutions for hotel owners as they continue to recover from the changes to their business plans,” said Josh Zegen, managing principal/cofounder, Madison Realty Capital. “We are enthusiastic about joining forces with Newbond to expand our product offering tailored to meet the evolving needs of hospitality real estate owners and operators.”
Neil Luthra, founding partner, Newbond, added, “We are excited to launch this partnership with Madison Realty Capital, a firm with a world-class lending platform, and a team that we are deeply familiar with, to provide a wide range of lending options to the hospitality market. Madison’s substantial resources coupled with Newbond’s extensive hotel underwriting capabilities will best position the platform to identify and capitalize on exciting opportunities in the hospitality space.”
Madison Realty Capital and the principals of Newbond have significant experience lending and investing in the hospitality sector. The principals of Newbond have completed more than $15 billion of debt and equity investments. Notable recent Madison Realty Capital transactions include a $105-million loan to Fort Partners for the acquisition and modernization of the Four Seasons Hotel Miami and a $210-million loan to Fort Partners for the construction of the Four Seasons Hotel and Private Residences Fort Lauderdale.
