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.
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.
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