(Read more on the debt and equity markets.)
NEW YORK CITY-Carlton Advisory Services Inc. has arranged $124 million in institutional equity and senior debt financing for Gotham Realty Holdings' acquisition of 110 E. 42nd St., a 206,853-sf office condominium in Midtown Manhattan. Carlton accessed a major money management firm to provide 80% of the equity for the acquisition, marking this firm's first real estate transaction.
According to www.mrofficespace.com, asking rents per sf are $62; however, Michael Campbell, partner at Carlton tells GlobeSt.com that he believes asking rents are around $65 per sf. Office tenants include Eller Media, Morgan Lewis & Bockius LLP, Ackman & Ziff Real Estate Group LLC, Newmark Real Estate LLC; and Cipriani serves as the retail tenant.
Campbell tells GlobeSt.com that the money management firm does not want its name to be out there. The first mortgage was placed with a major investment bank at a competitive spread, 10-year interest-only period and tenant improvement and leasing commission facility, Carlton says in a prepared statement. Carlton's efforts provided Gotham with 94% of the capital required to consummate the transaction.
The property is located on the south side of East 42nd Street between Park and Lexington avenues, directly across the street from Grand Central Station. It is benefiting from the robust leasing activity in the Grand Central submarket. Furthermore, "the building has significant upside due to its below market rents and near term tenant lease expirations," Carlton notes.
Carlton recently arranged the $140-million equity and debt recapitalization of 104 W. 40th St. as GlobeSt.com recently reported. Carlton also recently arranged a $130-million loan on behalf of Metropolitan Real Estate Investments for the acquisition of 292 Madison Ave. Metropolitan is a partner in Tao-Maofim, the joint venture that bought that property.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
