Ceruzzi scores $300M construction loan for Midtown East luxury condo

Madison Realty Capital was the lender

New York /
Aug.August 02, 2017 09:51 AM

Ceruzzi Properties and SMI USA have scored a $300 million construction loan that allows the developers to move ahead on a 72-story luxury condominium in Midtown East at 138 East 50th Street, sources told The Real Deal.

Madison Realty Capital was the lender. The loan is the biggest ever provided by the firm to date.

“We are seeing a lot of this kind of deal flow,” said Madison Realty Capital principal Josh Zegen. “We had heard they were looking for a mezz loan and a senior loan, so we went to them and said: ‘We’ll do a one-stop shop, we’ll provide the whole $300 million.'” Adding several lenders to the mix can complicate a project, Zegen said.

“This way, they won’t have to worry about multiple banks showing up at the closing,” he added.

Madison recently closed on a $270 million construction loan package for All Year Management’s residential redevelopment of a portion of the old Rheingold Brewery site in Bushwick.

The loan to Ceruzzi retires a $65 million land loan the developer had in place from the Industrial and Commercial Bank of China.

The project at 138 East 50th Street, designed by Pelli Clarke Pelli Architects, is slated to rise just over 800 feet and hold 124 luxury condos as well as about 7,500 square feet of retail space. Ceruzzi bought the site from Extell Development in 2013. Property records show the parcel sold for $86.2 million, but sources familiar with the transaction said Ceruzzi bought additional air rights which pushed the value of the deal past $100 million. Ceruzzi initially filed plans for a hotel at the site, but later opted to go the residential route. So far, the project has risen 40 stories.

SMI USA, the U.S. arm of Shanghai Municipal Investment, Shanghai’s largest state-owned enterprise, is on board as an equity partner. The company is also a partner with Ceruzzi on a luxury condo project at 520 Fifth Avenue and on the $453 million deal for the land under the Lipstick Building at 885 Third Avenue. SMI also holds a major equity stake in Extell’s Central Park Tower, which is slated to be the most expensive condo project in New York history.

 

To view or purchase a list of the 100 largest residential buildings in development, ranked by their number of units, click below

NYC’s 100 Largest Residential Projects in Development Free Sample

NYC’s 100 Largest Residential Projects in Development 

NYC’s 100 Largest Residential Projects in Development – PREMIUM Free Sample

NYC’s 100 Largest Residential Projects in Development – PREMIUM

Contact Derek Smith at [email protected] with any questions regarding TRData.


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
Clockwise from left: John D. Rockefeller, Izzy Englander, Steven Mnuchin, David Koch, Jacqueline Bouvier, and William Zeckendorf (Credit: Getty Images and StreetEasy)
For 15 years, David Koch lived at the world’s “richest building”
For 15 years, David Koch lived at the world’s “richest building”
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
Miki Naftali with 215 West 84th Street (Getty, Corcoran)
Naftali takes hit in battle with UWS holdout
Naftali takes hit in battle with UWS holdout
CW Realty's Cheskie Weisz and an aerial of the development site at 296 4th Avenue, 288 4th Avenue, 21 Denton Place (CW Realty, Google Maps)
Cheskie Weisz plans 200 Gowanus apartments
Cheskie Weisz plans 200 Gowanus apartments
Boston Properties CEO Owen Thomas and 343 Madison Avenue (Boston Properties, Getty Images)
Boston Properties plans 1M sf tower at ex-MTA HQ
Boston Properties plans 1M sf tower at ex-MTA HQ
1591 Alps Road in Wayne, NJ and March Associates Construction president Louis March (Google Maps, Getty, March Associates)
From funeral home to strip mall
From funeral home to strip mall
 SL Green’s Marc Holliday with 450 Park Avenue  (Taconic Partners, SL Green)
TRD Pro: Here are NYC’s biggest offices sales of Q2
TRD Pro: Here are NYC’s biggest offices sales of Q2
arrow_forward_ios

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

Loading...