Carlton Arranges Amazing Equity And Debt Stack For 511-Key Limited Service North and South Carolina Hotel Portfolio
June 23, 2017
June 23, 2017
Chairman Howard L. Michaels has announced that Michael J. Campbell, Managing Partner at The Carlton Group, has arranged approximately $55 million of equity and debt in a multi-tranched capital stack to facilitate the acquisition of a 511-key limited service portfolio acquisition in North and South Carolina consisting of five hotels branded by Marriott, IHG, and Choice flags. Managing Directors Steven Weiss and Steven Fenster assisted in the transaction.
The capital stack arranged by Carlton included an approximate $36.5 million first mortgage, $8 million of preferred equity from a West Coast wealth manager and $9 million of common equity which was invested by high net worth relationships of Carlton. In addition, Carlton’s hospitality team also brought in the hotel manager who invested capital along with the sponsors.
“We had to be creative in structuring the capital stack” Campbell stated. “Even though the projected returns were very attractive and the acquisition cap rate was high, we had to find investors who were comfortable investing in secondary markets and limited service hotels. But at the end of the day, both the Sponsors and Investors will do very well”.
Carlton arranged the capital structure on behalf of the general partnership between a highly experienced group of hospitality professionals and a high net worth investor looking to diversify its real estate holdings.
About THE CAMPBELL TEAM at The Carlton Group
The Campbell Team has consummated billions of dollars of transactions over the 18 years they have been together. They continue to specialize in raising capital for commercial real estate owners, investors, and developers in the execution of strategic joint ventures relating to the acquisition, financing, disposition, and/or restructuring of commercial real estate assets. They are proficient in accessing passive, promotable equity and debt capital markets on behalf of its clients, operating in virtually every asset class across a variety of geographic markets across the United States, Caribbean, Mexico and South America.
Founded in 1991, The Carlton Group is an international real estate investment banking firm that specializes in arranging equity partnerships and executing large, complex, often multi-tranche equity and debt transactions for large development and trophy assets. The firm has offices throughout the United States and Europe and has consummated well in excess of $125 billion of closed transactions for its high-profile roster of clients.