| Michaels and Carlton Close $120 million of Equity and Debt at Large Manhattan Condo Conversion Acquisition |
Carlton Chairman, Howard L. Michaels is pleased to announce the closing of a major Manhattan condo conversion acquisition for Harry Macklowe of Macklowe Properties.
The property is 150 E72nd Street, which is an existing, beautiful, pre-war, iconic, corner property, sitting at the intersection of 72nd Street and Lexington Avenue. The property, which totals 72,000 sf is going to be converted into condominiums by Macklowe Properties to take advantage of the strong Manhattan residential market and the dearth of large apartments that are currently available on the Upper East Side. The Upper East Side is rated as the number one residential location in Manhattan and presently suffers from having less than 10 pre-war condominium apartments greater than 3,000 sf on the market and available for sale.
For this transaction, Carlton Chairman, Howard L. Michaels was able to access a balance sheet lender, who provided an approximate $90 million first mortgage and Carlton also accessed its high net worth investor rolodex to bring in a very substantial investor who partnered with Mr. Macklowe.
This transaction continues a stream of highly successful large equity and debt transactions recently transacted by Mr. Michaels, Carlton partner, Michael Campbell and their elite team of private equity bankers. Thus far, in 2011, Messrs Michaels, Campbell, and the Carlton equity bankers have closed nearly $3 billion in equity/debt transactions. Carlton prides itself on providing its clients with a 24/7 work ethic and a highly aggressive client advocacy, which typically results in the best possible terms for its clients. Carlton specializes in providing commercial loan restructuring and recapitalization services. It is also one of the top intermediaries in providing large amounts of equity and debt, particularly for multi-tiered capital structures. The firm has a huge international and domestic rolodex of institutional and private high net worth investors who are interested in providing equity and debt solutions, often in partnership with quality investors.
Macklowe Properties has been an investor and developer for the last 40 years, having successfully developed over 17 million sf of residential and commercial real estate. Mr. Macklowe is generally acknowledged as a development genius and has completed many highly successful projects, including the redevelopment of the General Motors building and the successful development and sale of River Tower, and numerous other residential buildings. Mr. Macklowe also orchestrated a $500 million blockbuster sale of three residential properties to Equity Residential in 2009. Mr. Macklowe’s successes have generated billions of dollars in profits to Mr. Macklowe, his partners, and lenders.
| Carlton Closes $75 Million First Mortgage on Behalf of Thor Equities at 760 Market Street |
Carlton Chairman, Howard L. Michaels is pleased to announce the closing of a $75 million mortgage on behalf of the Thor Urban Operating Fund II.
The property, known as The Phelan Building, is one of San Francisco’s original and oldest flatiron office buildings. Located at 760 Market Street, the property contains approximately 226,000 sf of office space as well as 52,000 sf of retail. The Phelan Building, handsomely detailed and spectacularly sited, is one of the most prominent structures on Market Street and a superb example of flatiron architecture.
Led by Carlton Partner Michael J. Campbell and Managing Director Peter Steier, this loan transaction was completed at an accelerated pace with an aggressive balance sheet lender who provided an approximate $75 million first mortgage on behalf of the Thor Urban Operating Fund II, a real estate private equity fund sponsored by Thor Equities. Carlton successfully streamlined the underwriting of this complex deal, helping to maximize the loan proceeds and terms for Thor.
Thor Equities is a leader in urban real estate development, leasing and management, pursuing premier retail and mixed use assets in high density market places. Thor Equities' current portfolio totals approximately 12 million sf and is valued at more than $3 billion. Joe Sitt, Chairman of Thor Equities, is regarded as one of the premier owner/operators of retail and mixed use properties in the United States.
| Michaels Represents Harry Macklowe in Major Manhattan Luxury Apartment House Acquisition |
As reported in the Wall Street Journal, Bloomberg and other notable publications, it has been confirmed that famed developer, Harry Macklowe has gone to contract on 737 Park Avenue and Carlton Chairman, Howard L. Michaels is his advisor. 737 Park Avenue is one of the truly great remaining, unconverted, pre-war apartment buildings, majestically sitting on a corner location, directly on Park Avenue and 71st Street.
The property enjoys tremendous light and air by virtue of its corner location, and sits directly across the street from 740 Park Avenue, which is arguably one of Manhattan's most successful cooperatives. Mr. Macklowe, who is one of the most talented developers in the world, was able to capture this asset from a field of high profile investors who were all vying to acquire this asset.
Mr. Michaels has a long history with Mr. Macklowe, having arranged a major partnership for Mr. Macklowe at the General Motors Building several years ago. This transaction continues Carlton's success in raising capital for large, trophy Manhattan transactions, which has resulted in close to $2 billion in Manhattan deals just in 2011 alone.
Mr. Macklowe's plans for the buildings have not yet been announced, but it is certain to be spectacular, keeping with an illustrious career, which has had a string of unparalleled successes.
| Carlton Closes $300 million deal at 1180 Sixth Avenue with Chinese conglomerate and Murray Hill Properties |
Carlton Chairman Howard L. Michaels has announced the closing of 1180 Sixth Avenue in a joint venture between one of the
largest corporations in China and Norman Sturner of Murray Hill Properties.
"This was a very tense transaction which required an exquisite execution" remarked Partner Michael J. Campbell, based on the fact
that the mezzanine lender had instituted a UCC foreclosure sale and the senior loan was also in default.
In addition, the first mortgage also had to be refinanced which necessitated the simultaneous refinancing of the senior debt
coupled with an approximate $100 million equity check in order to pay off both lenders and recapitalize the ownership.
Working quickly, Carlton was able to access and structure the required capital which resulted in the closing and new ownership
which is comprised of Murray Hill and their Chinese investment partner. This marks the first major acquisition for the two
investment partners at a time when prime Manhattan assets are being traded at a premium. Future joint venture acquisitions
between Murray Hill and their investment partner are expected.
This transaction marks just one of over two billion dollars in 2011 Manhattan transactions which have been led by Carlton
Chairman Howard L. Michaels and his elite team of asset sale and recap specialists. Carlton provides highly specialized services to
institutions and borrowers who require strong advocacy and sophisticated valuation techniques in order to maximize value and
terms particularly where restructuring services may be required or the owner or holder may be under financial duress.
Murray Hill Partners has been in business for over 40 years and is one of the top real estate ownership and management
companies in Manhattan.
| Carlton Successfully Advises Broadway Partners on Major Recapitalization at 1.6 Million sf 450 W 33rd Street |
NEW YORK CITY-Brookfield Office Properties and Broadway Partners are forming a joint venture to recapitalize the ownership of the 1.6-million-square-foot office property at 450 W. 33rd St. Terms were not disclosed; a spokesman for Broadway Partners declines comment beyond what is contained in a statement from the two companies
The Wall Street Journal reported on Thursday that BOP will put in relatively little equity but will be on the hook for the mortgage that comes due about a year from now. Broadway Partners paid $664 million for 450 W. 33rd in June 2007, taking out a $365- million mortgage, according to city property records, and will retain a minority stake in the property, according to the WSJ.
A source familiar with the transaction tells GlobeSt.com the deal has not yet closed, and that it's not certain how much BOP equity will be involved in the JV. Howard Michaels of the Carlton Group acted as financial advisor to Broadway.
In a statement, Broadway CEO Scott Lawlor says the company is excited about "bringing Brookfield, an experienced, wellcapitalized real estate company, into the ownership of this attractive asset with significant upside potential." He adds that 450 W. 33rd, situated between Penn Station and the Hudson Yards redevelopment, is located "in one of the most dynamic submarkets of Manhattan, and we expect the property to benefit from New York City's office market recovery already underway."
| CARLTON CLOSES $430 MILLION EQUITY AND DEBT RAISE AND RESTRUCTURE AT ONE PARK AVENUE |
Carlton Chairman Howard L. Michaels announced the closing of a $430 million equity and debt recapitalization and restructure at One Park Avenue, an iconic one million sf office asset in Midtown.
This transaction represented a highly complicated restructuring and capital raise in that the $375 million first mortgage loan was in default and had been accelerated and was either headed to a foreclosure or discounted note sale. In addition, the senior mezzanine loan had been acquired by an opportunistic investor who was immediately set to commence a UCC foreclosure to gain control the asset. Carlton was retained on the evening of Thanksgiving and by the end of the year had miraculously gained consensus from all of the subordinate debt holders (which was held by four different parties) to accept a significant discounted payoff and had negotiated a standstill with the senior lender which allowed the recapitalization to move forward.
Simultaneously, the Carlton Team, under the leadership of Carlton Chairman Howard L. Michaels accessed several investors in a competitive process to provide up to $200 million of pari pasu equity with the property owner. Carlton then also ran a competitive process to get the best possible debt terms for a $250 million first mortgage. Concurrent with these efforts, Carlton helped negotiate a mutually acceptable payoff with the $375 million first mortgage which allowed the recapitalization to be finalized.
This transaction is typical of the billions of highly complicated, multi tranched transactions which Carlton has executed on behalf of some of the largest owners in the Unites States. Carlton prides itself on developing sophisticated valuation models while simultaneously negotiating with lenders and investors which have a diversity of interests and priorities in order to achieve a mutually acceptable resolution.
In addition, Carlton was able to draw on its substantial resources in order to quickly access qualified investors both from overseas and domestically who were able to move quickly providing the necessary equity on a timely basis without all of the deal pieces being totally buttoned up which is indicative of the way most restructures typically work. The Carlton team consisted of Howard L. Michaels, Michael J. Campbell and five other Carlton members that contributed to a synergistic effort with the owner in order to successfully recapitalize the property. Carlton's client was Murray Hill Properties who remains as an equity investor in the recapitalized partnership along with continuing management and leasing responsibilities.
Carlton Advisory Services, Inc. is an international real estate investment banking firm prominent in commercial and residential loan sales and debt and equity placement. Carlton also specializes in arranging passive, promotable equity for real estate and real estate-related Fund vehicles for many of its clients who include some of the most successful developers and financial institutions around the world. Carlton was founded in 1991, and has consummated approximately $50 billion of transactions.
Debt & Equity Finance – Loan Sale Advisory – Merchant Banking - Investment Sales
(212) 545-1000 phone (212) 545-8110 fax
www.carltongroup.com
Carlton completes $4 billion UCC Foreclosure sale for Paulson and Winthrop
Carlton completes $4 billion UCC Foreclosure sale for Paulson and Winthrop- The assets include some of the finest hospitality assets in the world including Grand Wailea Resort Hotel and Spa in Maui, Hawaii, The Doral Golf Resort & Spa in Miami, Florida and the Ritz Carlton Grande Lakes and the JW Marriott Grande Lakes each located in Orlando, Florida.
TRANSACTION OVERVIEW:
In March 2006, a joint venture between Highgate Hotels Inc. and Goldman Sachs’ Whitehall Street Global Real Estate Limited Partnership 2005 Fund (collectively, the “Sponsor”), acquired the Westin San Francisco - Market Street Hotel (f/k/a the Argent Hotel) (the “Property”). This full service, luxury, AAA Four Diamond hotel boasts of 676 guest rooms (including 26 suites), 21,000 sf of meeting space, a state of the art fitness center, an upscale Italian restaurant and a central location near Market Street that is in close proximity to many demand generators. A total of approximately $220 million of senior mortgage debt, mezzanine debt and equity was utilized in order to acquire and capitalize the Property.
For additional information regarding the public UCC Foreclosure sale, please execute the attached Confidentiality Agreement. Upon the execution and return of the Confidentiality Agreement in such form, you will be given a USER ID and Password to access the CONFIDENTIAL website located at http://www.carltongroup.com/dbwestinsf/ (the “Secure Website”). In addition, you can also access the Confidentiality Agreement on the Secure Website. Please return the executed Confidentiality Agreement to Michael Campbell at MJC@carltongroup.com or via Fax at (212) 656-1196. If you have any questions, please call Michael Campbell at (212) 716-5633.
