NEW YORK CITY—A joint venture between Ceruzzi Holdings and SMI USA—the fee owner of the Lipstick Building—has secured first mortgage financing for the ground lease position at the iconic Midtown tower.
The $272 million, four-year, fixed-rate loan was placed with Zurich-based Credit Suisse through its US subsidiary, Column Financial. Loan proceeds will be used to retire the existing loan and cover closing costs.
Holliday Fenoglio Fowler worked on behalf of the JV to secure the capital. The brokerage firm's debt placement team was led by managing director Christopher Peck and senior managing director David Nackoul. HFF previously advised on the sale of the building's fee position to the borrower in 2016.
Located at 885 Third Ave., the Lipstick Building is a 635,000-square-foot, trophy office tower on the East Side. Nicknamed for its unique elliptical profile, the 34-story building appears as if its three layers could retract telescopically, making it one of the city's most recognizable structures.
“This transaction is further evidence as to the strength of the debt capital markets when financing trophy-quality real estate for trophy-caliber borrowers,” says Peck. “Not only was pricing incredibly strong, but Credit Suisse's process was exceptional, closing a complex transaction within a very tight time frame.”
The $272 million, four-year, fixed-rate loan was placed with Zurich-based Credit Suisse through its US subsidiary, Column Financial. Loan proceeds will be used to retire the existing loan and cover closing costs.
Holliday Fenoglio Fowler worked on behalf of the JV to secure the capital. The brokerage firm's debt placement team was led by managing director Christopher Peck and senior managing director David Nackoul. HFF previously advised on the sale of the building's fee position to the borrower in 2016.
Located at 885 Third Ave., the Lipstick Building is a 635,000-square-foot, trophy office tower on the East Side. Nicknamed for its unique elliptical profile, the 34-story building appears as if its three layers could retract telescopically, making it one of the city's most recognizable structures.
“This transaction is further evidence as to the strength of the debt capital markets when financing trophy-quality real estate for trophy-caliber borrowers,” says Peck. “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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