X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEW YORK CITY-Cardinal Investments has acquired a Chelsea commercial complex package for $97.5 million. The three buildings, 511-519 W. 25th St., 521-539 W. 25th St. and 541 W. 25th St. have a combined size of more than 172,500 sf.

Partner Michael Campbell, managing director Steve Fenster and SVP Steven Rock of Carlton Advisory Services placed $92-million senior debt and mezzanine financing for the acquisition. The seller is 511 W. 25th St. Corp. and the buyer is a joint venture between Halcyon Real Estate Investors and Cardinal Real Estate Investments. Grubb & Ellis Co. represented both the buyer and seller in the purchase and sale of the three buildings.

Kyle Ransford, general partner of Cardinal, explains that the opportunity in Chelsea is tremendous. “A wholesale second transformation of the area is under way. The pedestrian artery between the Meatpacking and the rail yard will have a greater positive impact on the area than most are expecting. As a neighbor of the Highline, we are excited to contribute to the artist and Highline communities.”

Trevor Stahelski, the New York City partner of Cardinal Investments, tells GlobeSt.com that “what drew us to the project was the chance to be part of the art district and the highline in the same project. It is a rare and exciting opportunity that we could not pass up.” He adds that “we are not changing the use of the building. we want to improve the look and feel of the buildings so that we can continue provide commercial office spaces for small businesses and gallery space to Chelsea businesses.”

For this transaction, Carlton accessed a balance sheet lender for the first mortgage, and separately brought in a boutique money management firm to provide the mezzanine for its client’s acquisition. Carlton’s efforts provided the borrower with a low cost of capital required to consummate the transaction, notable in today’s capital constrained environment, the firm said in a prepared statement.

Carlton recently revealed that it has closed more than $1 billion in equity and debt financing transactions in January. Some of the significant deals that the firm closed includes: a $100-million entity level equity placement between a pension fund and a Carlton multifamily developer client; $100 million of equity and debt arranged for the ground-up development of a boutique hotel in Brooklyn; a $300-million entity level equity placement continues to fund four new West Coast transactions; a $300-million discounted performing note acquisition by Carlton Strategic Ventures, the firm’s principal transactions group; a $100-million equity placement for the $300-million acquisition of a 3,000-unit multifamily apartment portfolio in Texas; and a $100-million equity and debt placement for a multifamily development in Latvia–Eastern Europe.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.