The Carlton Group, one of Manhattans top intermediaries for arranging development, conversion and hospitality debt and equity financing has just closed $700 million of joint venture equity and multi tranched debt to facilitate the closing of a four building Manhattan multifamily portfolio which aggregated more than 600 apartments and over 65,000 square feet of prime retail space.
For this transaction, Carlton quickly assembled a multi tranched debt stack which included a $525 first mortgage, a $100 mezzanine investment and $75 million of joint venture equity which was invested by a top institutional investor. This type of multi tranched debt and joint venture equity is indicative of the type of highly complicated transactions which Carlton typically closes. Moreover, given that the properties may be converted to condominium the net operating income was significantly lower than debt service and compared to the generous amount of proceeds which Carlton was able to assemble.
Over the last 18 months Carlton has closed well over $5 billion of development, conversion and hospitality transactions in New York, throughout the United States and Europe.