The Real Deal New York

Ceruzzi, Kuafu land $290M construction loan for UES condo

TCI to finance 61-unit project 151 East 86th Street
April 03, 2017 06:00PM

Shang Dai, Louis Ceruzzi and renderings of 151 East 86th Street (Credit: Ceruzzi Properties)

Ceruzzi Properties and Kuafu Properties snagged a $290 million construction loan for their condominium project on the Upper East Side.

The Children’s Investment Fund (TCI), a United Kingdom-based hedge fund that has been one of the chief providers of construction financing for the Hudson Yards megadevelopment, is lending on the 18-story project at 151 East 86th Street, the Commercial Observer reported. The $415 million mixed-use development will comprise 151,500 square feet of residential space and 36,000 square feet of ground-floor retail.

The HOK-designed building will house 61 condominiums with an average size of 2,485 square feet. A 6,500-square-foot amenity space will include a lounge, rooftop terrace, gym, children’s playroom and concierge service.

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Demolition is underway and the project is set to be complete by 2019.

The developers acquired the site for $118.6 million. In 2013, they paid Sol Goldman’s heirs $33.1 million for a 99-year ground lease at 147 East 86th, and they bought 151 East 86th for $85.5 million in 2014 from Town Sports International Holdings.

Huntington National Bank provided $68 million in financing in 2014, property records show, including a $38 million acquisition loan, $24 million project loan and $6 million gap mortgage.

Kuafu, led by Shang Dai, lost two key executives in recent months. Last fall, founding principal Zengliang “Denis” Shan left the firm to start his own venture. In February, head of development Jeff Dvorett jumped to Midwood, a firm led by John Usdan.  [CO]E.B. Solomont