Carlton Group Chairman Howard L. Michaels announced the closing of a large leasehold first mortgage financing for the acquisition and repositioning of the former Out Hotel which is being rebranded as the Cachet Boutique Hotel and the Playboy Club NYC.
Merchants Hospitality, owned and operated by Abraham Merchant, Richard Cohn, and Adam Hochfelder, as well as Asian-based Cachet Hospitality Group have acquired The Out Hotel and intend to manage and rebrand the W. 42nd Street property as the 107-key Cachet Boutique New York Hotel. In addition, Merchants, and Cachet intend to bring the Playboy Club back to New York this Fall after a three decade absence. Playboy Enterprises currently operates Playboy Clubs in London, Vietnam, Thailand and India.
Chairman Howard Michaels and Managing Director Steven Weiss executed the transaction on behalf of Carlton which leveraged its long standing relationships and used its deep market knowledge of financing complicated transactions to obtain an attractive acquisition loan which included a $5 million renovation component “Despite the challenging financing market for hotels we were able to secure leasehold financing which was advantageous to the client,” said Weiss.
For further information about Carlton’s services, please contact the undersigned.
Howard L. Michaels Steven Weiss
Chairman Managing Director
(212) 716-5607 (212) 716-5631
About The Carlton Group (www.carltongroup.com)
Founded in 1991, The Carlton Group is an international real estate investment banking firm that specializes in arranging equity partnerships and executing large, complex, often multi-tranche equity and debt transactions for large development and trophy assets.
The firm has offices throughout the United States and Europe and has consummated well in excess of $125 billion of closed transactions for its high-profile roster of clients. The Carlton Group also executes an aggressive international advisory platform which is currently executing well over three billion dollars of equity, debt and investment sale advisory business throughout Europe. Carlton’s expertise includes arranging passive promotable equity, typically raising 90-95% of the equity to facilitate client transactions. Carlton is also an active principal investor and, under Carlton Strategic Ventures, owns and manages in excess of 3 million square feet of commercial, residential and retail property.
About Merchants Hospitality, Inc. (www.MerchantsHospitality.com)
Founded 31 years ago, Merchants Hospitality, and its principals, have owned, operated, and developed some of the most luxurious destinations in the country and Caribbean. Properties have included hotels, residential condominiums, office buildings and restaurants including 485 Fifth Avenue, currently home to the Hyatt Andaz, the Beekman Hotel at UN Plaza, 260 Park Avenue South Luxury Condominium, Aruba Starwood Hotel, Resort & Time Share, NYC’s famous Pier 15 at South Street Seaport, 350 Madison Avenue to name a few. Merchants also owns 18 premier restaurants in NYC including Philippe Chow on 60th and Madison which is on of NYC’s most profitable restaurants according to NYC F&B 2015. Merchants is developing a prime residential and retail luxury senior living facility consisting of 219,242 square feet located in the Upper East Side of Manhattan. Merchants Principals Abraham Merchant, Richard Cohn and Adam Hochfelder have been industry leaders in the real estate and hospitality world for over 30 years, and have been honored by multiple charities across the country.
About Cachet Hospitality Group (www.cachethotelgroup.com)
Cachet Hospitality Group (CHG) is a lifestyle hospitality branding and management company with offices in Los Angeles, Shanghai and Bangkok. CHG’s mission is to be the leading innovative and socially responsible hospitality company in the Asia Pacific. With existing properties in Cabo, New York and numerous projects under development, CHG is focused on establishing properties in Greater China, Southeast Asia and the Americas and expanding its technology offerings to enhance their guest experience.