Mack Real Estate Group sues Ceruzzi Properties over $15M loan

Mack Real Estate Group sued Ceruzzi Properties last week over a $15 million loan provided on July 1, 2019.

The suit is connected with the property 520 Fifth Avenue, which Ceruzzi Properties and SMI USA planned to develop into a 76-story mixed-use project. Instead, Rabina Properties acquired control through a joint venture with Ceruzzi and SMI, according to the New York Post.

The Real Deal reported at the time that $232 million in debt owed to Mack was to be paid off.

This $15 million was issued as a promissory note July 1, 2019, and was never secured by collateral. It was supposed to have been secured by collateral documents by January 2020, but that did not occur, according to the complaint.

Mack notified Ceruzzi in March 2020 that the loan was thus in default, and this suit is seeking to enforce a repayment of the loan plus interest.
-Adam Pincus