Michael Shvo and his partners Deutsche Finance and Partners Bilgili Group have landed a $120 million construction loan from CIM Group for 685 Fifth Avenue, the companies announced Wednesday.
Shvo and his partners purchased the property in 2018 for $135 million. It is the former Dorothy Gray Building and was previously the global headquarters for Gucci.
The developers got approval in February to convert the office portion of 685 Fifth Avenue into residential condos. Mandarin Oriental Hotel Group will manage the new homes, making the project the country’s first standalone Mandarin Oriental residence.
The project will convert 100,000 square feet of office space at the building into 69 luxury condos, to open in 2021. The team will add five floors to the building, making it 25 stories tall. Lower floors will feature retail space.
This is the second recent major construction loan for Shvo, who closed on $190 million from ACORE Capital in October for 9200 Wilshire Boulevard in Beverly Hills, where he is working on a 54-unit condo.