Manhattan, NY According to Holliday Fenoglio Fowler, L.P. (HFF), it has arranged $272 million in first mortgage financing for the ground lease position of 885 Third Ave., also known as The Lipstick Building, a 635,000 s/f, 34-story, trophy office tower in the Midtown area.
HFF worked on behalf of the fee owner, a joint venture between Ceruzzi Holdings LLC and SMI USA, to place the four-year, fixed-rate loan with Zurich-based Credit Suisse through its U.S. subsidiary, Column Financial, Inc. Loan proceeds will be used to retire the existing loan and cover closing costs. HFF previously advised on the sale of the building’s fee position to the borrower in 2016.
Nicknamed for its unique elliptical profile, The Lipstick Building has been a New York City icon since its development in 1986. Designed by architect Philip Johnson, the 34-story building stands out from other quadrilateral towers and appears as if its three layers could retract telescopically, making it one of the most recognizable structures in New York.
HFF’s debt placement team was led by managing director Christopher Peck and senior managing director David Nackoul.
“This transaction is further evidence as to the strength of the debt capital markets when financing trophy-quality real estate for trophy-caliber borrowers,” Peck said. “Not only was pricing incredibly strong, but Credit Suisse’s process was exceptional, closing a complex transaction within a very tight timeframe.”
Ceruzzi Holdings LLC is a New York City-based, full-service company, which develops, acquires and operates a diversified portfolio of mainly real estate properties. Ceruzzi leverages its 25-year track record of acquisition, development and structuring to create unique opportunities that deliver outsized returns. Recent Ceruzzi projects in New York City include the acquisition of the majority position of land beneath the Lipstick Building and 138 East 50th St., a Cesar Pelli-designed luxury condominium project. The company’s real estate professionals specialize in numerous disciplines, including construction, entitlements, leasing, marketing, management and finance.
HFF operates out of 24 offices and is a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing.