Ceruzzi, SMI land $200M bridge loan on 520 Fifth site

Developers will later seek construction financing, which could top $500M

TRD NEW YORK /
Jul.July 06, 2017 09:30 AM

Louis Ceruzzi and renderings of 520 Fifth Avenue (Credit: Ceruzzi Properties via NY YIMBY)

Ceruzzi Holdings and SMI USA secured a $200 million bridge loan from Mack Real Estate Credit Strategies for their development site at 520 Fifth Avenue, where construction costs are expected to exceed $500 million.

The debt replaces a $130 million acquisition loan from JPMorgan Chase and will cover pre-development costs for the mixed-use tower, the Commercial Observer reported.

The loan comes with an 18-month term with a one-year extension, and gives the developers time to decide on a final development plan.

Ceruzzi and SMI bought the site at the corner of 43rd Street for $275 million in 2015 from Thor Equities, which had planned a 71-story tower with a hotel and residential condos above a retail base.

The new owners reportedly planned to move ahead with Thor’s original scheme, but progress slowed and revised plans that surfaced late last year show the developers plan to build 145 condos, 208 hotel rooms and three floors of retail. HFF’s Christopher Peck and David Nackoul brokered the financing.

It’s unclear if those are the current plans. Once pre-development is complete, the owners will be in the market for construction funds.

One possible lender is JPMorgan, which has recently become aggressively active in the condo-construction space. Earlier this year, two brokers filed a lawsuit claiming SMI cut them out of $4 million in commissions on the land sale. [CO]Rich Bockmann


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)

Real estate stocks push up this week as U.S.-China trade tensions ease

416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

RCP CEO Richard O’Toole and Related CFO David Zussman (Credit: O’Toole via Westchester Magazine and Zussman via Related)

Related tries to calm Israeli investors after market panic

Apollo Commercial Real Estate Finance CEO Stuart Rothstein and RedSky Capital principal Benjamin Bernstein (Credit: Apollo and ICSC)

Brooklyn development’s $150M loan falls into default

Miki Naftali, Steven Witkoff and Ryan Freedman

TRD Talks: How developers are contending with coronavirus

EB-5 could be brought back to life (Credit: iStock)

Could a pandemic bring EB-5 back to life?

Nonbank mortgage lenders could be left holding the bag for as much as $100 billion in late payments (Credit: iStock)

“It’s going to be a liquidity tsunami:” Mortgage firms gear up for missed payments

Governor Andrew Cuomo (Photo by Spencer Platt/Getty Images; iStock)

Cuomo’s foreclosure, mortgage moratorium has no teeth

arrow_forward_ios
Loading...