NEW YORK CITY — Meritz Securities, a South Korea-based lender and intermediary, has provided a $350 million inventory loan for The Centrale, a 63-story residential tower in Midtown Manhattan.
The loan, which essentially functions as permanent financing, is collateralized by the property and pays off the property’s $300 million construction loan. New York City-based Madison Realty Capital provided that loan to the project developer, Ceruzzi Properties, in 2017.
The Centrale features 124 residential condominium units, 7,645 square feet of ground-floor retail space and a parking garage. Pelli Clarke Pelli Architects designed the project, construction of which was completed in early 2019.
Units at the property feature one-, two-, three-, four- and five-bedroom floor plans that range in size from 777 to 5,388 square feet. Amenities include an indoor pool, a spa, fitness center and shared workspaces. The property also offers proximity to Grand Central Station, several subway lines, Times Square and Midtown East’s Plaza District.
JLL arranged the loan through Meritz Securities on behalf of Ceruzzi Properties. VI Development Group advised Meritz on the transaction and tapped PIA Asset Management to manage the project.
“New York City remains the go-to market for global capital,” says Chris Peck, a managing director for JLL. “This transaction proves that quality product and premier sponsorship, coupled with a central location, will always drive liquidity for condo inventory financing.”
“The transaction shows that Korean investors have rapidly developed their underwriting abilities in recent years, putting them on par with major local lenders,” adds Terence Park, CEO and president of VI Development Group. “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.”
According to the parties involved, the deal marks the first inventory loan provided by a Korean lender in New York City’s condo market. With a condo inventory loan, the borrower pays the loan down as individual units are sold.
— Taylor Williams