Ceruzzi Secures $272M Lipstick Building Ground Lease Refi
“Lipstick” building (Shutterstock)
HFF announced that it has arranged first mortgage financing for the ground lease position of 885 Third Ave, on behalf of the owner – a joint venture between Ceruzzi Holdings and SMI-USA.
An HFF debt placement team negotiated the $272 million four-year, fixed-rate loan with Zurich-based Credit Suisse U.S. subsidiary, Column Financial. Loan proceeds will go towards retiring the existing loan and covering closing costs.
The venture partners paid SL Green Realty $453 million last year for a 67-year lease of the ground beneath the building. The transaction was one of the biggest 2016 New York City office deals and one of 2016’s top Asian investments in the NYC office market.
The 34-story, 635,000-square-foot Midtown Manhattan office tower is a trophy property that is one of the most recognizable structures in New York, nicknamed the Lipstick Building.
HFF Managing Director Christopher Peck said that the loan agreement “is further evidence as to the strength of the debt capital markets when financing trophy-quality real estate for trophy-caliber borrowers. Not only was pricing incredibly strong, but Credit Suisse’s process was exceptional, closing a complex transaction within a very tight time frame.”
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Ioana Ginsac
Senior Content Writer, Industry News & Reports
Ioana is a content writer who has been covering all-things-CRE (and more) for several Yardi network publications since 2017. You will find her byline regularly in industry news and market reports, but also on articles covering sustainable development, green urbanism, and innovation, all of which she has been passionately learning about for more than a decade. Her work has been referenced by publications including AmericanInno, Bisnow, BusinessInsider, Commercial Property Executive, Curbed, Fast Company, Forbes, GlobeSt.
