$1.8 billion bifurcated original

Howard Michaels, chairman of locally based Carlton Group Ltd., was able to arrange $630 million consisting of a $325-million first mortgage, $135-million mezzanine mortgage and $170 million in equity from a $3-billion opportunistic fund for the property. Carlton sources tell GlobeSt.com that the $3-billion opportunistic fund for the property "is a Carlyle fund." The source couldn't specify the exact fund.

Michaels has executed more than $40 billion in equity and debt transactions over the last few years and many of the transactions have been equity and debt recapitalizations. Michaels, working with extremely difficult market conditions, according to a Carlton release, was able to arrange the 666 Fifth Ave. retail condo equity recap, which it considers the largest equity and debt recapitalization to take place in Manhattan this year.

According to a prepared statement, "this recap shows that for the right deals and the right borrowers led by the right intermediary, there is still plenty of capital available to complete transactions."

In early July, the Carlyle Group and Stanley Chera's Crown Acquisitions completed the acquisition of a controlling interest in the retail portion of 666 Fifth Ave. from Kushner Cos., for $525 million. Carlton Advisory Services arranged the venture between Carlyle, Crown and Kushner as well as the lending syndicate, which included Barclays and SL Green. Carlyle's investment in the property came from Carlyle Realty Partners V, a $3-billion opportunistic real estate investment fund that invests in office, hotel, industrial, retail, residential and senior living sectors.

Carlton has been busy this month. As GlobeSt.com recently reported, Carlton Group's investment business, Carlton Strategic Ventures LLC, formed a new joint venture with Prudential, to acquire performing discounted loans and originate and provide "low cost" mezzanine and preferred equity loans on a principal basis. The venture, called CSV Capital LLC, intends to be fully invested over the next 12 months.

Instant Insights /

Carlton Raises $630M for 666 Fifth Ave. Recap

Related Stories

Recommended For You