NEW YORK, NY – August 19, 2015 – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has closed the sale of and secured $150 million in financing for the acquisition of 520 Fifth Avenue, a premier development site located at the southeast corner of 43rd Street and Fifth Avenue in Manhattan.
A joint venture between Ceruzzi Holdings (Ceruzzi) and Shanghai Municipal Investment USA (SMI USA) purchased the property. 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 tower with more than 33,000 square feet of irreplaceable Fifth Avenue retail.
520 Fifth Avenue is a 10,625-square-foot site with 85 feet of prime 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 resulting in dramatic skyline views.
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. It comes as no surprise that J.P. Morgan was able to deliver an attractive financing solution under a short timeframe,” said principal of Ceruzzi Holdings, 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,” said 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,” said Christopher Peck.
About Ceruzzi Holdings LLC
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. The company’s real estate professionals specialize in numerous disciplines including construction, entitlements, leasing, marketing, management and finance.
About Shanghai Municipal Investment
Shanghai Municipal Investment USA (SMI USA), formerly known as Shanghai Chengtou Corporation, is the largest state-owned enterprise in Shanghai. The company has successfully executed 80 megaprojects spanning the comprehensive reconstruction of the Bund along the Shanghai waterfront and the Shanghai Yangtze River Tunnel and Bridge to Qing Cao Sha Water Plant and the Sinan Mansions. In addition, the company has completed more than 2,000 sustainable projects to date and has recently finalized its cornerstone project, the Shanghai Tower.
About J.P. Morgan
J.P. Morgan’s Corporate & Investment Bank is a global leader across banking, markets and investor services. The world’s most important corporations, governments and institutions entrust J.P. Morgan with their business in more than 100 countries. With $20.5 billion of assets under custody and $401 billion in deposits, the Corporate & Investment Bank provides strategic advice, raises capital, manages risk and extends liquidity in markets around the world. The Commercial Mortgage-Backed Securities (“CMBS”) business within J.P. Morgan's Investment Bank originated the loan on 520 Fifth Avenue. The CMBS's special situations lending business targets short-term financing opportunities in major markets and acquires commercial real estate loans in the secondary market.
About Fisher Brothers
Fisher Brothers is a New York-based, family-owned real estate firm founded in 1915 and now in its third generation. In addition to a robust development and management platform, Fisher Brothers has created a lending platform to originate loans on transitional assets in New York City and Washington, D.C. alongside traditional lending institutions. The debt platform focuses on real estate projects in transition, such as acquisition, bridge and construction, where the firm’s development expertise and local market knowledge help source, evaluate and execute on deals.
HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.