NEW YORK CITY-Carlton Advisory Services arranged two simultaneous mortgage transactions aggregating $718 million on behalf of the Sapir Organization: $515 million of fixed-rate financing for Sapir's acquisition of 11 Madison Ave. concurrently with $203 million of floating-rate financing for 260-261 Madison Ave.
Eleven Madison is a 2.3-million-sf, class A, 29-story Midtown tower that serves as the world headquarters for Credit Suisse First Boston, which leases in excess of 85% of the building. Sapir purchased the building last month for $675 million from MetLife.
The other properties, 260-261 Madison, are two prime office assets facing one another in Midtown Manhattan that contain an aggregate of 900,000 sf of office and retail space. The properties are occupied primarily by long-term, credit and national tenants. Zar Realty is the asset and property manager of 260-261 Madison.
The Sapir Organization,which is owned and controlled by Tamir Sapir, holds a Manhattan portfolio in excess of eight million sf valued at more than $2 billion. Other holdings are the Downtown area's 2 Broadway and 100 Church St. In November, Zar ended a long-standing legal action with the MTA over 2 Broadway, relating to the MTA's long-term net lease of the Zar-owned property. The 1998 lease and subsequent renovations lead to various disputes between the MTA and ZAR resulting in multiple cumbersome lawsuits since 2000. The matter was also investigated by law enforcement agencies that concluded that both the MTA and Zar were victimized by criminality, fraud and mismanagement in connection with the renovation project at the hands of third parties The pair came to “a mutually acceptable resolution,” according to the MTA.
In order to accommodate the 11 Madison closing, Carlton simultaneously procured the financing for all three properties in just 20 business days during the Thanksgiving to Christmas holiday period. Carlton executives Michael J. Campbell and Bryant D. Bernhardt assisted Carlton chair Howard L. Michaels with the placement of the financing.
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