Carlton tops $4B in transactions so far this year.Carlton Advisory Services' Chairman Howard L. Michaels announced that Carlton closed over $4 billion in transactions thus far in 2005. This is a phenomenal start for Carlton, which completed $6 billion in debt, equity and loan sale transactions in 2004. Carlton continues to supplement its strength in mortgage brokerage and loan sales with an increased focus on equity recapitalizations, including transactions on some of the biggest office building and hotel deals in the country. Mr. Michaels believes that in the current environment of low capitalization rates Capitalization Rate According to the Appraisal Institute, it is a method used to convert an estimate of a single year's income expectancy into an indication of value in one direct step, by dividing the income estimate by an appropriate rate. , rising property values and a weak U.S. dollar, real estate owners will benefit from an abundance Abundance See also Fertility. Amalthea’s horn horn of Zeus’s nurse-goat which became a cornucopia. [Gk. Myth.: Walsh Classical, 19] cornucopia conical receptacle which symbolizes abundance. [Rom. Myth. of "cheap" capital in the marketplace to replace expensive partners and to "cash out" on the value that they have added to their assets. Carlton has shown an impressive ability to access relatively inexpensive overseas capital including German, Asian, Israeli and other "off the radar" equity sources to recapitalize re·cap·i·tal·ize tr.v. re·cap·i·tal·ized, re·cap·i·tal·iz·ing, re·cap·i·tal·iz·es To change the capital structure of (a corporation). re·cap a number of high profile assets. Some of the noteworthy transactions that Carlton has either closed or been retained as exclusive advisor for in 2005 include: * $805 Million Joint Venture, Credit Lease & Acquisition Financing--One Madison Avenue-Carlton arranged a highly structured, $805 million joint venture credit lease and acquisition financing package for one of the largest deals in Manhattan this year, One Madison Avenue Madison Avenue, celebrated street of Manhattan, borough of New York City. It runs from Madison Square (23d St.) to the Madison Bridge over the Harlem River (138th St.). In the 1940s and 50s, some of the major U.S. . The property features a 1.2 million square foot office building net leased to Credit Suisse First Boston Credit Suisse First Boston was originally the trading name of the Financière Crédit Suisse-First Boston, a London-based 50-50 investment banking joint venture formed in 1978 between the First Boston Corporation and Credit Suisse. , a 270,000 square foot tower prime for residential conversion and air rights for additional development, which are owned 50-50 by Credit Suisse First Boston and SL Green. * $575 Million Hotel Mortgage--Carlton is arranging $575 million in floating rate debt on a portfolio of five hotel assets owned by a partnership led by a prominent hotelier. The assets are located in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). , Florida and New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . * $600 Million of Equity & Debt--Ground-Up Hotel/Condo Development--West Side Manhattan--Mr. Michaels is seeking interest from potential equity partners for an exciting new project on the West Side of Manhattan. The ground-up development will include over 1.1 million square feet of mixed-use space, including a hotel, residential condominium condominium In modern property law, individual ownership of one dwelling unit within a multidwelling building. Unit owners have undivided ownership interest in the land and those portions of the building shared in common. units, ground-floor retail and office space. * $200 Million Recapitalization--Premier Office Building--West Side Manhattan--Mr. Michaels is arranging $200 million of preferred equity for the recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. of a premier office building located on the West Side of Manhattan. * $181 Million Portfolio of Residential Mortgage Loans--Carlton's Loan Sale Group sold a $181 million portfolio of fixed rate 15 and 30 year mortgage loans on behalf of a large southeast regional bank. The loans were newly originated performing residential home equity loans and the transaction closed in March for an attractive premium despite a significant increase in interest rates. * $1.71 Billion Recapitalization--General Motors Building Manhattan--Mr. Michaels completed the $1.71 billion recapitalization of the General Motors Building, one of the most prestigious office properties. The Carlton Group brought in a German closed end fund as a capital partner to Macklowe Properties and in the process was able to replace the existing equity with cheaper overseas capital. |
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