Manhattan, NY Ceruzzi Properties and Madison Realty Capital (MRC) have closed on a $300 million construction loan for the completion of a major mixed-use development at 138 East 50th St. in the Midtown East neighborhood. MRC, an institutionally-backed real estate investment firm focused on real estate equity and debt investments in the middle markets, provided the loan for the project, which Ceruzzi is developing in partnership with SMI USA (SMI). The development consists of an 803-ft., 72-story tower with a façade designed by Pelli Clarke Pelli Architects, containing 124 residential condominium units, 7,500 s/f of retail space at and below grade, and a 25-space parking garage.
“Madison Realty Capital was a pleasure to complete this transaction with,” said Lou Ceruzzi, founder and president of Ceruzzi Properties. “The execution of the deal was smooth, efficient, and seamless. We are looking forward to our continued relationship with MRC and additional transactions as we keep an eye toward the future.”
“MRC was the ideal lending partner for this high-profile development, complementing the stellar project team we have assembled,”said Tom Tao, resident of SMI.
“This transaction highlights MRC’s status as one of the very few single-source financing solution provider for top-tier sponsors like Ceruzzi Properties and their partners,” said Josh Zegen, co-founder and managing principal of MRC, who structured the financing. “At a time when many developers have to pull together multiple capital sources in order to get deals done, we are offering one-stop shopping and a more efficient process. That is a compelling proposition for many of our clients, and we are often sought after as a lending partner for that reason.”
Construction is progressing at the site and the concrete superstructure has already reached the 40th floor, with topout expected this November. The condominiums are scheduled for completion in late 2018. Pelli Clarke Pelli Architects designed the façade, and SLCE is the architect of record. AECOM/Tishman Construction serves as the general contractor.
Ceruzzi plans to offer a mix of efficient one to five-bedroom units, ranging from 777 s/f to 5,388 s/f, for a total of 200,000 sellable s/f. Interior design by Champalimaud will be one element of the property’s overall high-end environment. The building will include amenities including an indoor pool and spa, fitness center, and shared work areas.
MRC is a New York-based real estate investment firm that pursues real estate equity and debt investments in the middle market. Founded in 2004, MRC has invested in $6 billion of transactions in the multifamily, retail, office, industrial and hotel sectors.
Ceruzzi Holdings LLC is a 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 opportunities that deliver outsize returns. Recent Ceruzzi projects in New York City include the acquisition of the majority position of land beneath the Lipstick Building and the development site located at 520 Fifth Ave. The company’s real estate professionals specialize in numerous disciplines, including construction, entitlements, leasing, marketing, management, and finance.