What We Are Working On

Equity

55% IRR on $30 Million of JV Equity for Caribbean Resort Acquisition – This is an amazing property which includes approximately 200 acres of beautiful pond and beachfronts which includes 18 existing beachfront villas which comprise 96 keys.  The capitalization also includes the capital to build an additional 20 keys directly on the beach, which together with the existing inventory will produce approximately $10 million in NOI.   Furthermore, in addition to the 116 keys referenced above, the property has approximately 220k sf of additional beachfront as of right hotel and residential housing which is highly valuable and effectively over secures your loan.

2.5x multiple and 25% IRR on $60 Million of JV Equity for Heavily Cash Flowing U.S. Hotel Portfolio – We are the exclusive advisor to the family office of one of the top institutional investors in the world who is acquiring a 1,300 key, 11 property portfolio of limited service select hotels across the U.S. The Properties are flagged by some of the largest hotel franchise companies in the world and predominantly include Hilton and La Quinta Inn & Suites. This portfolio is being acquired at an unlevered 10% cap rate, which is why you will be getting superior current cash on cash yields. The Properties will be managed by one of the largest and most dynamic independent management companies in North America with an award winning portfolio of over 500 hotels and resorts with more than 60,000 guestrooms.

3.0x multiple and 25% IRR on $20 million of JV equity for Core + Miami Office Tower Acquisition – We are the exclusive advisor to a highly-successful commercial real estate developer and operator who is seeking a $20 million equity partner to acquire a 300,000 square foot institutional-quality office building in Downtown Miami. The property is strategically located on Biscayne Boulevard with direct exposure to Bayfront Park and Bayside Marketplace, with unimpeded views of Biscayne Bay. Moreover, in addition to its significant in-place cash flow, the property has over 600,000 sf of adjacent parcel development rights. In addition to the attractive in-place cash flow and collateral value, the sponsor’s purchase price is at a significant discount to replacement cost and in-place rents are nearly 20% below market, offering a major mark-to-market leasing opportunity to further increase value.

 

Debt

15% IRR on $100 million (66% LTC) Junior Mezzanine Debt for Mixed-use Retail and Hotel Acquisition in Midtown Manhattan – We have been retained by one of our best-in-class clients to arrange a $400 million construction loan for a Virgin-branded hotel and retail development in Midtown Manhattan. We have circled the first $300 million of debt and would be interested in you providing the remaining final $100 million junior mezzanine/B note to a last dollar of $400 million. There will be $200 million of subordinate capital invested junior to you, and at a conservative 6% cap rate for the 72,000 sf of retail space, your basis will approximate $150 million (only $323,000 per key) for the Virgin Hotel, which is expected to make $27 million in NOI.

 

10% IRR on $70 Million (60% LTC) First Mortgage for One Million Square Foot Development Site Acquisition in Brooklyn – We are the exclusive advisor to an institutional investor who is seeking a $70 million first mortgage acquisition loan to acquire a prime residential mixed use site which is fully approved to build more than 500,000 zfa and will likely be approved to increase this prime residential site to 1.1 million square feet of residential mixed use development. The sponsor will be investing over $50 million of cash equity at the closing. The property is located in the booming residential section of Sunset Park Brooklyn which is known as Brooklyn’s Chinatown. Sunset Park is located right next to Park Slope, Borough Park and Bay Ridge, and boasts one of the largest Chinese populations in New York. As such, there is tremendous demand for new mixed-use development and there are very few available sites of this size with this excellent central location.

Please contact us if you are interested in providing debt or equity on any of the above transactions:    email: hlmichaels@carltongroup.com

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