Ceruzzi Properties and Chinese partner Shanghai Municipal Investment USA (SMI) are developing a luxury condominium tower at 520 Fifth Avenue. If all goes as planned, the partnership hopes to sell $1 billion worth of condos at the site.
HFF has secured $150 million in financing for the acquisition of the property which is located at the southeast corner of 43rd Street and Fifth Avenue in Manhattan. The 12-month loan, which was led by J.P. Morgan with mezzanine financing provided by Fisher Brothers, will preface the future development of a state-of-the-art high-rise with more than 33,000 square feet of Fifth Avenue retail.
The building site is a 10,625-square-foot parcel with 85 feet of Fifth Avenue frontage. The new owners have said that their mixed-use tower will consist of retail, luxury condominiums and possibly a hotel with 150-180 rooms. Town Residential has been retained to market the condos.
“Given my long history and relationship with J.P. Morgan and 520 Fifth Avenue’s unrivaled development potential, we are delighted to have found a pre-development financing solution that allows us to set in motion a development project that will positively change the landscape of Fifth Avenue for generations,” said principal of Ceruzzi Holdings, Louis L. Ceruzzi, Jr.
“It was a privilege to have worked alongside the Ceruzzi and SMI USA teams to capitalize the last large-scale development parcel along the renowned Fifth Avenue that will pave the way for one of the most iconic mixed-use developments in the world,” said HFF associate director Christopher Peck.
Ceruzzi and SMI paid Thor Equities $325 million for the property and another 60,000 square feet of air rights. Thor Equities acquired the site for $150 million in 2011 and demolished the two pre-war buildings that were on it. Thor’s plans called for a 71 story tower with 353,000 square-feet.