NEW YORK CITY—A joint venture of Ceruzzi Holdings and Shanghai Municipal Investment USA has purchased 520 Fifth Ave, a development site, for $150 million in pre-development financing. The seller was undisclosed.
Located at the southeast corner of 43rd Street and Fifth Avenue, the 10,625-square-foot site features 85 feet of frontage along Fifth Avenue.The new owners plan to develop a state-of-the-art mixed-use tower that will consist of flagship retail and either luxury condominiums or a combination of luxury condominiums and hotel. The undeveloped parcel has zoning square footage that will accommodate up to 355,000 square feet.
The financing, arranged by HFF, is a 12-month loan that was led by JP Morgan, with mezzanine financing provided by Fisher Brothers. It will support future development of a state-of-the-art tower with more than 33,000 square feet of Fifth Avenue retail space.
The HFF investment sales team representing the seller was led by senior managing director Andrew Scandalios. HFF's debt placement team was led by senior managing director David Nackoul and associate director Christopher Peck.
“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,” says Ceruzzi Holdings principal of Louis L. Ceruzzi, Jr.
“We are delighted to have entered into our second transaction with our New York partner, Ceruzzi Holdings, and are looking forward to bringing another iconic building to New York City,” adds Kevin Gao, a representative of SMI USA.
“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,” says Peck.
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