CIM Group has provided a $120 million construction loan to a joint venture led by SHVO, Bilgili Group, and Deutsche Finance.

It will be used for the adaptive re-use of the historic 685 Fifth Avenue in 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 Beaux Arts tower on the Southeast corner of Fifth Avenue and 54th Street was originally built in 1928 and was known as the Dorothy Gray Building after one of the top cosmetic pioneers of the 1920s. Upon completion of the redevelopment anticipated in 2021, 685 Fifth will become 69 Mandarin Oriental residences. Restoration and development of the building is currently under way with 10 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.

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 10 pension fund in Europe. 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.