Major Asian and Sovereign Wealth Capital Flowing Through Carlton

This past week saw a continuing flow of major capital coming into New York and the United States from Asia, Saudi Arabia and other MENA investors who spent approximately $3 billion on these transactions.

Chinese investor Greenland along with a major institutional Kuwaiti investor wrote a large equity check to come into the Park Lane Hotel (for which Carlton originally provided the $616 million loan) and HNA (who Carlton just a couple of years ago closed a $400 million deal with at 1180 Avenue of the Americas) who announced the acquisition of Carlson Hotels.  In addition, a large Saudi investor joint ventured with a British asset manager to acquire the Sony Building in a $1.4 billion trade.

The dynamic of the foregoing is that it is important for large real estate developers to utilize well-connected intermediaries who have relationships with international investors to take advantage of the abundance of international capital who are looking to joint venture or to acquire directly large assets in gateway cities like Manhattan.  Below please find a few of the billions of dollars of transactions which we have closed with MENA and Asian investors:

·        $616 Million Structured Financing To Support Park Lane Hotel Acquisition – Carlton arranged the foregoing loan for the acquisition of this famed New York hotel asset.  Carlton was able to arrange the structured financing which was less than a 2% debt yield on existing NOI.

·        1180 Avenue of the Americas – We closed a $100 million equity investment by a large Chinese conglomerate to acquire a $400 million Avenue of the Americas office building.

·         125 Greenwich Street – Carlton arranged approximately $400 million of debt and equity from multiple overseas investors including a Singaporean lender, a high net worth India mezzanine investor and a major institutional Chinese investment firm.  Carlton also arranged the initial funding of a $170 million EB-5 financing which will facilitate the further development of this 91-story condominium tower.  The sell-out is expected to exceed $1 billion.

·         Billion Dollar Manhattan Condominium Deal – Carlton is currently raising approximately $100 million in mezzanine capital from a large Chinese conglomerate.

·         Confidential Times Square Transaction – Carlton has currently circled more than $300 million of Asian capital for this $2 billion recapitalization.

·         DEAL OF THE WEEK – For institutional investors who are looking to earn a high current and overall yield on a prime Manhattan retail and hospitality project, I encourage you to contact us to discuss the 13% pay, 14% IRR yield on a 65% LTC position.  The approximate investment is $150 – 200 million.

The foregoing underscores the billions of dollars of large development and transitional deals which Carlton has recently completed and our direct access to international investors is unparalleled. We have completed more than $2 billion of transactions with MENA and Asian investors within the last couple of years and encourage you to contact us directly so that we can access this capital on your behalf.

We look forward to hearing from you.


Howard L. Michaels


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