NEW YORK, Feb. 20 (Korea Bizwire) — Ceruzzi Properties has secured the next phase of financing at The Centrale, the luxury residential condominium tower at 138 East 50th Street in the Midtown East neighborhood of Manhattan.
Meritz provided Ceruzzi with a $350 million inventory loan collateralized by the luxury residential tower, which pays off a previous $300 million construction loan Madison Realty Capital provided to Ceruzzi in 2017. The new financing marks the first Korean inventory loan in New York City.
“We are pleased with the seamless execution of this latest financing between all parties involved,” said Ceruzzi President Arthur Hooper. “In addition, we are very appreciative of the original construction loan that Madison Realty Capital provided on the property, which allowed us to complete this remarkable asset within the original timeline.”
The 803-foot, 63-floor tower features 124 luxury residential condominium units, 8,527 square feet of retail space at and below grade, and a 25-space parking garage, with a façade designed by Pelli Clarke Pelli Architects. Ceruzzi completed The Centrale in early 2019 and has begun selling condos at the project, having put 20 units into hard contract already.
VI Development Group advised Meritz on the transaction and tapped PIA Asset Management to enter as the asset management company for the project.
“We’ve always had great confidence in this borrower and this asset,” said Terence Park, CEO and President of VI Development Group. “The transaction shows that Korean investors have rapidly developed their underwriting abilities in recent years, putting them on par with major local lenders. We believe this is just the beginning of an influx of sophisticated Korean capital that will provide an attractive alternative financing option for New York City borrowers moving forward.”
The new financing pays off the $300 million construction loan Madison Realty Capital provided to Ceruzzi in 2017 and allows the firm to successfully exit the investment.
“It’s been a pleasure working with a top-tier sponsor such as Ceruzzi Properties and the firm’s partners throughout this process,” said Josh Zegen, Co-Founder and Managing Principal of Madison Realty Capital. “We are proud to have played a significant role in bringing this stunning, high-quality asset to fruition.”
JLL represented Ceruzzi exclusively on the transaction.
“New York City remains the go-to market for global capital,” said JLL Managing Director Chris Peck. “This transaction proves that quality product and premier sponsorship, coupled with a central location, will always drive liquidity for condo inventory financing.”
The Centrale offers a mix of efficient one- to five-bedroom units, ranging from 777 square feet to 5,388 square feet. The building features luxury amenities including an indoor pool and spa, fitness center, and shared work areas, while interior design by Champalimaud Design contributes to the property’s overall high-end sheen.
The property is located in the Midtown East’s Plaza District, between Third Avenue and Lexington Avenues. The high-end location offers easy access to Grand Central and its range of subway trains, including the 4, 5, 6, 7 and S, as well as uptown, downtown and crosstown buses, and close proximity to nearby attractions such as Times Square and Bryant Park.
About Madison Realty Capital (MRC)
Madison Realty Capital (MRC) is a New York City based real estate private equity firm focused on debt and equity investment strategies with regional offices in key markets including Los Angeles and Dallas. Founded in 2004, MRC has closed on approximately $12 billion of transactions in the multifamily, retail, office, industrial and hotel sectors. The firm manages investments in the United States on behalf of a global investor base. MRC is a fully integrated firm with over 60 employees across all real estate investment, development, and property management disciplines. Among other industry recognitions, MRC has been named to the Commercial Observer’s prestigious “Power 100” list of New York City real estate players and is consistently cited as one of the industry’s top construction lenders.
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Source: Madison Realty Capital via GLOBE NEWSWIRE