Madison Realty Capital Launches Hotel Lending Platform with Newbond

(Updated with additional information)

Madison Realty Capital (MRC) and Newbond Holdings 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.    

Building on MRC’s institutional lending platform and Newbond’s hospitality industry expertise and strong operational knowledge, the partnership will offer financing programs to new and existing borrowers across the hospitality spectrum 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 and co-founder of MRC. 

Added Neil Luthra, founding partner at Newbond, “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.”

MRC 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 MRC transactions in the hospitality space 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.

Pictured, at top: Josh Zegen. Below left: Neil Luthra.