Partner Michael Campbell, managing director Steve Fenster and SVP Steven Rock of Carlton Advisory Services placed $92-million senior debt and mezzanine financing for the acquisition. The seller is 511 W. 25th St. Corp. and the buyer is a joint venture between Halcyon Real Estate Investors and Cardinal Real Estate Investments. Grubb & Ellis Co. represented both the buyer and seller in the purchase and sale of the three buildings.
Kyle Ransford, general partner of Cardinal, explains that the opportunity in Chelsea is tremendous. "A wholesale second transformation of the area is under way. The pedestrian artery between the Meatpacking and the rail yard will have a greater positive impact on the area than most are expecting. As a neighbor of the Highline, we are excited to contribute to the artist and Highline communities."
Trevor Stahelski, the New York City partner of Cardinal Investments, tells GlobeSt.com that "what drew us to the project was the chance to be part of the art district and the highline in the same project. It is a rare and exciting opportunity that we could not pass up." He adds that "we are not changing the use of the building. we want to improve the look and feel of the buildings so that we can continue provide commercial office spaces for small businesses and gallery space to Chelsea businesses."
For this transaction, Carlton accessed a balance sheet lender for the first mortgage, and separately brought in a boutique money management firm to provide the mezzanine for its client's acquisition. Carlton's efforts provided the borrower with a low cost of capital required to consummate the transaction, notable in today's capital constrained environment, the firm said in a prepared statement.
Carlton recently revealed that it has closed more than $1 billion in equity and debt financing transactions in January. Some of the significant deals that the firm closed includes: a $100-million entity level equity placement between a pension fund and a Carlton multifamily developer client; $100 million of equity and debt arranged for the ground-up development of a boutique hotel in Brooklyn; a $300-million entity level equity placement continues to fund four new West Coast transactions; a $300-million discounted performing note acquisition by Carlton Strategic Ventures, the firm's principal transactions group; a $100-million equity placement for the $300-million acquisition of a 3,000-unit multifamily apartment portfolio in Texas; and a $100-million equity and debt placement for a multifamily development in Latvia--Eastern Europe.
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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.
