Loan Sought on Lipstick Building

A partnership is seeking to refinance a $113 million mortgage on the leasehold interest in Midtown Manhattan’s Lipstick Building.

The 635,000-square-foot structure, at 885 Third Avenue, is owned by IRSA, which is controlled by the Elsztain family of Argentina, and Marciano Investment of Beverly Hills.

The partnership is seeking an unspecified amount above the existing loan’s balance, with the excess used for various costs, including capital and leasing expenditures. It’s unclear whether a fixed or floating rate is preferred. Mission Capital is the partnership’s advisor.

The 34-story building, between East 53rd and East 54th Streets on the east side of Third Avenue, has a red-granite face and an oval shape whose three layers resemble an open lipstick tube. The lead tenant, law firm Latham & Watkins, occupies 409,000 sf.

The Class-A tower, in the Midtown/Plaza District, was built in 1986 by Houston-based Hines and Sterling Equities of New York. In 2004, the duo sold the property to a Tishman Speyer partnership for $235 million.

In 2007, the Tishman group divided the ownership of the structure and the underlying land, selling the pieces in separate transactions. A group of foreign investors, led by investor Haim Revah, acquired the leasehold interest for $606.8 million.

Reva’s partners included IRSA, Marciano and Israeli shops Tao Tsuot and Financial Levers. In 2011, IRSA and Marciano gained control of the leasehold interest in conjunction with a recapitalization.

Also in 2007, the Tishman team sold the land to a partner ship between SL Green Realty of New York and SL Green spinoff Gramercy Capital for $317 million. In 2010, SL Green bought out Gramercy’s position. Last February, SL Green sold the underlying land to a joint venture between Shanghai Municipal of China and Ceruzzi Properties of Fairfield, Conn., for $453 million.