(To read more on the debt and equity markets, click here.)
NEW YORK CITY-Two large equity and debt transactions for condominium conversions here close. Together they total approximately $1.3 billion. Both are on the Upper East Side.
The financings were arranged by Carlton Group's chairman Howard L. Michaels, managing director John Bralower and partner Michael Campbell. "The market is there for the right projects," Bralower tells GlobeSt.com. He notes that Carlton's last two deals, total more than $2 billion, were in the condo conversion sector.
The larger of the two transactions is Manhattan House, which is a 583-unit, one-million-sf apartment complex located at 65th Street between Second and Third avenues. Carlton first arranged a joint venture between N. Richard Kalikow's Manchester Real Estate & Construction and Jerimiah O'Connor's O'Connor Capital Partners. The joint venture was the winning bidder the property for a reported sales price of $625 million. Carlton then arranged a maximum financing for the joint venture's acquisition. The projected sellout of the Manhattan House conversion is in excess of $1 billion, Carlton officials predict.
The second transaction involves River Terrace, a 408-unit, class A apartment complex originally built and developed by the Macklowe Organization. Situated practically on the East River and around the corner from New York Hospital, this condominium conversion will be orchestrated by Ben Korman and Meir Cohen of C & K Properties and Joshua and Asher Zamir of Zamir Equities, who took the site for a reported $363 million. River Terrace amenities include a 60' pool, two Jacuzzis and a health club with three squash courts.
Both projects now need to go through an approval process through the New York State Attorney General's office. The process should take at least a year.
Carlton Group, which specializes in arranging equity recapitalizations and joint venture transactions, has performed similar services for the owners of the General Motors Building, the Bank of America Center in San Francisco, the Sears Tower in Chicago and 1111 Pennsylvania Ave. in Washington, DC.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
