Holliday Fenoglio Fowler has arranged $272 million in first mortgage financing for the ground lease position of 885 Third Avenue, also known as The Lipstick Building, a 635,000-square-foot, trophy office tower in Midtown Manhattan.
HFF worked on behalf of the fee owner, a joint venture between Ceruzzi Holdings LLC and SMI USA, to place the four-year, fixed-rate loan with Zurich-based Credit Suisse through its U.S. subsidiary, Column Financial, Inc. Loan proceeds will be used to retire the existing loan and cover closing costs. HFF previously advised on the sale of the building’s fee position to the borrower in 2016.
Nicknamed for its unique elliptical profile, The Lipstick Building has been a New York City icon since its development in 1986. Designed by architect Philip Johnson, the 34-story building stands out from other quadrilateral towers and appears as if its three layers could retract telescopically, making it one of the most recognizable structures in New York.
HFF’s debt placement team was led by managing director Christopher Peck and senior managing director David Nackoul.
“This transaction is further evidence as to the strength of the debt capital markets when financing trophy-quality real estate for trophy-caliber borrowers,” Peck said. “Not only was pricing incredibly strong, but Credit Suisse’s process was exceptional, closing a complex transaction within a very tight timeframe.”