A rendering of the corner view of the 520 Fifth Ave. mixed-use tower.
NEW YORK CITY—The joint venture of Ceruzzi Holdings LLC and SMI (Shanghai Municipal Investment) USA has secured $200 million in pre-development financing for its planned 520 Fifth Ave. mixed-use tower project.
The 71-story development, situated at the southwest corner of 43rd Street and Fifth Avenue, will feature approximately 425,000 square feet, including 33,000 square feet of Fifth Avenue retail. The remaining square footage will feature luxury condominiums (approximately 171,000 square feet) and a 175,000-square-foot five-star luxury hotel. 520 Fifth Avenue is a 10,625-square-foot site with 85 feet of frontage along Fifth Avenue. Ground breaking for the development will begin in 2018.
Holliday Fenoglio Fowler, L.P., working on behalf of the Ceruzzi Holdings-SMI USA venture, arranged the floating rate loan through Mack Real Estate Capital Strategies, L.P. HFF reports the proceeds of the loan will be used to repay existing debt, conclude design and move forward with pre-development work on the project. No other financial terms of the transaction were released. HFF’s debt placement team was led by managing director Christopher Peck and senior managing director David Nackoul. HFF secured the original pre-development financing for the project.
Tom Tao, president of SMI USA, says the loan provided exceptional terms and an extremely attractive rate and the firm was able to close the transaction in less than a month from when it agreed to terms.
Lou Ceruzzi, president and CEO of Ceruzzi Holdings LLC, adds, “This transaction was remarkably executed. The timeliness and diligent focus of all parties involved came together to solidify the deal, allowing us to refinance this excellent asset and move along the process on an expedited timeline.”