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

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

New York /
Jul.July 06, 2017 09:30 AM

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
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
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Developer abandons troubled Hamilton Heights rezoning proposal
Developer abandons troubled Hamilton Heights rezoning proposal
Developer abandons troubled Hamilton Heights rezoning proposal
Damac Properties founder Hussain Sajwani and the Surfside collapse site (Damac, Getty)
Dubai developer revealed as $120M bidder for Surfside collapse site
Dubai developer revealed as $120M bidder for Surfside collapse site
Vorea, Domain and L+M close on $88M LIC development site
Vorea, Domain and L+M close on $88M LIC development site
Vorea, Domain and L+M close on $88M LIC development site
15 Hanover Place in Brooklyn (Google Maps)
Lonicera Partners developing 314-unit building in Brooklyn
Lonicera Partners developing 314-unit building in Brooklyn
Surfside site’s stalking horse bidder signed contract, auction slated for February as claims could reach $1B
Surfside site’s stalking horse bidder signed contract, auction slated for February as claims could reach $1B
Surfside site’s stalking horse bidder signed contract, auction slated for February as claims could reach $1B
Longfellow Real Estate Partners CEO Adam Sichol with renderings of 310 East 67th Street (Friends UES, Rendering by DBOX, Longfellow)
Blood Center rezoning on Upper East Side approved
Blood Center rezoning on Upper East Side approved
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...