Priority Capital Advisory has closed an $11.5 million senior loan to recapitalize Vivo Madison, a recently converted multifamily community in Madison, Wisconsin. Founder and President Zachary Streit announced that the financing was completed on behalf of joint venture partners REALM and OTR Real Estate, which previously acquired the asset when it operated as a Radisson Hotel.
The joint venture purchased the former hotel in April 2023 and executed a hotel-to-apartment conversion strategy. The business plan centered on reconfiguring the rooms to function as residential units by installing kitchenettes in every unit and enhancing the property with new common-area amenities. Following completion of the conversion, the property now operates as a 153-unit multifamily asset branded as Vivo Madison.
Vivo Madison is composed of 147 studio units and six one-bedroom units in a two-story building situated on a 4.53-acre site. The property targets renters seeking compact, highly efficient floor plans supported by shared amenity spaces. According to Streit, the asset required a tailored capital structure as it continued to stabilize after the hotel-to-multifamily conversion, and the new senior loan was structured to support the property through this lease-up phase.
The community is currently 56% leased, with expectations for full occupancy by the end of the year. The recapitalization is intended to provide the ownership with additional flexibility as the property progresses toward stabilization, reflecting lender willingness to underwrite assets that are still in lease-up but demonstrate tangible demand.
Vivo Madison benefits from an infill location at 517 Grand Canyon Drive, adjacent to University Research Park, a 1.8 million-square-foot life sciences and technology corporate campus. The property is approximately a 10-minute drive from the University of Wisconsin–Madison, offering access to a large academic and medical employment base as well as student and faculty housing demand. It is also within walking distance of West Towne Mall, providing residents with nearby retail, dining, and services.
The closing of the senior loan underscores ongoing capital interest in adaptive reuse strategies that convert underutilized hospitality assets into multifamily housing in established employment corridors. For REALM and OTR Real Estate, the new capital stack supports the final stages of lease-up and positions Vivo Madison to benefit from its proximity to major institutional and retail anchors in the Madison market.
