Chairman Howard L. Michaels is pleased to announce that Steven Weiss, Managing Director at The Carlton Group, has arranged $46 million of high leverage first mortgage financing for a recently built 144-unit Class A luxury apartment complex located in Bound Brook, NJ called Queen’s Gate Apartments. Managing Director Jeff Kosow assisted in the transaction.
This stretch senior loan allowed the borrower to pay off its construction financing and cash-out of the project even before the project reached stabilization. This apartment complex which was recently built is just completing its lease-up with the last tenants taking occupancy. The three year 85% LTV loan is intended to be a bridge to agency debt once cash flow stabilizes.
“The developer has several deals teed up in their development pipeline and this financing allowed the sponsors to re-circulate capital into their other projects.” Weiss stated. “All too often owners underleverage their properties with bank debt too early in the process being enticed by low interest rates when capital can be re-deployed to earn a much higher rate of return.”
For further information 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.