Manhattan, NY Holliday Fenoglio Fowler, L.P. (HFF) has arranged $200 million in pre-development financing for 520 Fifth Ave., a to-be-built, mixed-use property.
HFF worked on behalf of the owner, a joint venture between Ceruzzi Holdings LLC (Ceruzzi) and SMI USA, to secure the floating-rate loan through Mack Real Estate Credit Strategies, L.P. (Mack). HFF previously brokered the sale of the property to the partnership and secured acquisition financing on its behalf. The proceeds of this loan will be used to repay existing debt, conclude design and move forward with pre-development work.
HFF’s debt placement team was led by managing director Christopher Peck and senior managing director David Nackoul.
Ceruzzi’s partner, Tom Tao of SMI USA, said, “Mack presented us with exceptional terms and an extremely attractive rate. Mack has performed incredibly well, and we closed the deal less than a month from when we agreed to terms.”
President and CEO of Ceruzzi Holdings LLC, Lou Ceruzzi, added, “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.”
Situated at the southwest corner of 43rd St. and Fifth Ave., the development will comprise approximately 425,000 s/f featuring more than 33,000 s/f of irreplaceable Fifth Avenue retail. The remaining square footage will feature condominiums and a five-star hotel. 520 Fifth Ave. is a 10,625 s/f site with 85 ft. of frontage along Fifth Ave. that will provide dramatic skyline views once complete. Ground breaking of the vertical development will begin in 2018.
“We were privileged to advise best-in-class sponsors Ceruzzi and SMI USA on this transaction,” Peck said. “We look forward to watching the project enhance the Manhattan skyline and applaud Mack for fantastic execution.”