April 12, 2017
The owners of the ground lease on the world-famous Lipstick Building in Midtown Manhattan refinanced with a new $272-million loan.
Star architect Philip Johnson designed the 34-story landmark, a 635,000-square-foot tower at 885 Third Ave. Column Financial, subsidiary of Credit Suisse, provided a four-year CMBS loan with an interest rate fixed at 3.35%.
When Ceruzzi and SMI USA bought the ground lease in February 2016, the property had a mortgage with a high interest rate. That loan finally became eligible for prepayment in April.
“This transaction is further evidence as to the strength of the debt capital markets, when financing trophy-quality real estate for trophy-caliber borrowers,” said Christopher Peck, managing director for HFF, which arranged the financing. “Not only was pricing incredibly strong, but Credit Suisse’s process was exceptional, closing a complex transaction within a very tight timeframe.”
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