CIM Group has provided a $120 million construction loan to a joint venture led by SHVO, Bilgili Group, and Deutsche Finance for the adaptive re-use of the historic 685 Fifth Avenue in Midtown Manhattan.
The building will become home to the Mandarin Oriental brand’s first standalone residences in the Americas, while its lower floors remain premium retail.
The 20-story building, once the headquarters of fashion house Gucci, was originally built in 1928 and was known as the Dorothy Gray Building.
Upon completion of the redevelopment anticipated in 2021, 685 Fifth will become 69 Mandarin Oriental residences. Restoration and development of the building is currently underway with ten additional floors being added to the tower.
The historic 685 Fifth sits in the heart of New York’s luxury retail core, a short walk from Central Park, and nestled among some of the world’s most luxurious hotels. It was once the headquarters of Gucci, and today, flagship retailers such as Coach, Stuart Weitzman, and Tag Heuer occupy the building’s lower floors.
READ ALSO : CIM Group sells Marquee at Block 37 apartment tower
The project is led by developer-owners SHVO with Bilgili Group and Deutsche Finance. Investors include Bayerische Versorgungskammer (“BVK”), one of the largest institutional investors in Germany and a top ten pension fund in Europe. The group purchased 685 Fifth Avenue in 2018 for $135 million.
The group recently purchased the former Coca-Cola Building at 711 Fifth Avenue. Earlier this year, the group purchased the historic Raleigh, Richmond, and South Seas Hotels in Miami Beach.
READ ALSO : Miami’s historic iconic hotel sold to joint venture