---
title: "Capstone Equities Acquires 140 Crosby Street for $51M"
url: https://burnaze.com/article/fce53de7-29cc-44eb-b5f9-985885cff7a6
source: "Commercial Observer"
original_url: https://commercialobserver.com/2026/05/140-crosby-street-sale-capstone-equities/
author: "Edavis"
category: "Real Estate"
topics: ["Finance & M&A"]
published: 2026-05-26T19:28:34.000Z
modified: 2026-10-31T13:18:48.840Z
image: https://commercialobserver.com/wp-content/uploads/sites/3/2026/05/Avi-Kollenscher-19-E-Houston-St-credit-Propertyshark.jpg?quality=80&resize=1200%2C630&strip=
---

# Capstone Equities Acquires 140 Crosby Street for $51M

**TL;DR:** Capstone Equities has acquired 140 Crosby Street, a SoHo office building, for $51.4 million from MC 19 East Houston, an entity tied to Madison Capital. The building was previously owned by Madison Capital and Vornado Realty Trust, who defaulted on the property's $75 million mortgage debt.

*By Edavis, originally published in Commercial Observer on 2026-05-26. [Read the original](https://commercialobserver.com/2026/05/140-crosby-street-sale-capstone-equities/).*

## Story

**Capstone Equities** has taken ownership of a SoHo office building after moving to foreclose on it last year.

Capstone-linked entity **CE 140 Crosby Owner** acquired **140 Crosby Street** for $51.4 million from **MC 19 East Houston**, an entity tied to **Madison Capital**, according to city records made public Tuesday.

The 35,000-square-foot Class A office building — also known as **606 Broadway** and **19 East Houston Street** — is bounded by East Houston and Prince streets in the heart of SoHo’s retail corridor.

Current retail tenants at 140 Crosby include **Citizens Bank** and electronics store **JBL**, but the offices above were largely empty as of last August, when Capstone filed a foreclosure lawsuit against former co-owners, Madison Capital and **Vornado Realty Trust**. The developers had previously defaulted on the property’s $75 million mortgage debt, which Capstone acquired in July, *The Real Deal* reported.

Capstone completed the foreclosure acquisition this month with a $39.6 million agreement with **Prime Finance**, according to city records. The loan consolidated prior mortgages and a new gap mortgage into a single lien. The agreement detailed an outstanding principal of $34 million on the property, and included a gap mortgage for $5.53 million.

Madison and Vornado constructed the six-story office and retail building at 140 Crosby from the ground up in 2019. Five years later, with the development failing to find its footing and a default on the horizon, the developers marketed the building for sale at $100 million, *TRD* reported, but failed to find a buyer.

A spokesperson for Vornado declined to comment. Capstone, Madison and Prime Finance did not immediately respond to requests for comment.

## Entities

- Real Estate (sector)
- Commercial Observer (publication)
- real estate investment (topic)
- foreclosure (topic)
- office building acquisition (topic)
- 140 Crosby Street (location)

---
Originally reported by Edavis, Commercial Observer (https://commercialobserver.com/2026/05/140-crosby-street-sale-capstone-equities/). Summarized by Burnaze (https://burnaze.com/article/fce53de7-29cc-44eb-b5f9-985885cff7a6).