Equity Placement
October 24, 2011
Both private and institutional owner operators seek out Carlton’s expertise and access to equity capital to effect acquisitions and recapitalizations which allow owners to replace expensive capital partners and/or monetize all or a portion of the appreciation of their assets and still maintain a significant ownership interest and management income.
The tremendous growth of Carlton’s business in the equity area is due to the fact that the firm specializes in arranging “low cost” passive, promotable equity. The firm also has unique access to an abundance of overseas and domestic institutional and high net worth investor sources. It is through these competencies that Carlton is able to structure, negotiate and close these transactions quickly.
Carlton has unparalleled access to “off the radar” capital sources looking to team up with quality operators. These include domestic funds, as well as overseas equity sources seeking real estate investment opportunities in the U.S. Thoroughly conversant in the broad range of investment criteria these investors seek, Carlton can immediately arrange the appropriate pairing for your recapitalization or acquisition. Often, our investors are willing to provide up to 95% of the required equity capital, on terms significantly more favorable than those available from opportunity and value-added funds. Carlton has arranged the following select equity transactions:
Representative Equity Placement Transactions:
 $1.7 Billion Recapitalization – The General Motors Building, New York, NY
Carlton completed this assignment as exclusive advisor to Macklowe Properties in the $1.6 billion recapitalization of this world-class, trophy office building. For the equity component, Carlton accessed a major German investor.
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 $840 Million Equity and Debt Acquisition Capital – Manhattan House, New York, NY
Carlton arranged a joint venture equity and debt recapitalization for this luxury 583-unit condominium conversion located on Manhattan’s Upper East Side. The transaction represented one of the largest condominium conversions in the country. |
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 $315 Million Equity and Debt Acquisition Financing- 311 South Wacker Drive, Chicago, IL
Carlton arranged over $315 million of equity and debt financing on behalf of one of its most active clients for the acquisition of 311 South Wacker Drive, a Class A, trophy 1.3 million square foot office tower located on the prestigious Wacker Drive in Chicago’s hot West Loop submarket. The capitalization included a $244 million first mortgage acquisition financing, which Carlton arranged with a major investment bank at an extremely competitive spread, and approximately $65 million of joint venture equity financing from a private equity source. |
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 $250 Million Equity and Debt – 1185 Avenue of the Americas, New York, NY
Carlton arranged two separate transactions several years apart on this prime, one million square foot Sixth Avenue office tower. For the acquisition, Carlton arranged a joint venture between Goldman Sachs and a private group of investors where Goldman provided effectively 95% of the capital for our clients to acquire this tremendous asset. Several years later, we arranged a $250 million recapitalization which facilitated our clients “take out” of the Goldman Sachs equity position. This allowed our clients to gain 100% ownership of this asset. |
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| $220 Million Equity Recapitalization – Three Building Office Portfolio, Downtown Manhattan, New York, NY
Carlton arranged the joint venture equity on behalf of a high profile development and management firm, for a three-building downtown Manhattan office portfolio totaling 1.1 million square feet. Carlton accessed a “first time” Norwegian pension fund and a major U.S. pension fund to provide the joint venture equity for these assets. |
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 $200 Million Equity and Debt – EAB Plaza, Long Island, NY
Carlton arranged $200 million of debt and equity financing on behalf of a major New York owner/developer for the acquisition of EAB Plaza, two office towers located on Long Island totaling 1.1 million square feet. |
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| $193 Million Equity and Debt – 500-512 Seventh Avenue – New York, NYCarlton procured $193 million of senior debt and B-piece re-financing for this 1.15 million square foot office building located in Midtown Manhattan. Carlton originally arranged $110 million of acquisition financing including senior debt and preferred equity (98% of the purchase price) on behalf of its client, a major national owner/developer/operator. | |
| $175 Million Equity and Debt – Parklawn Building – Rockville, MDCarlton procured $175 million in debt and equity financing (98% of total capitalization) for the acquisition of the Parklawn Building, a 1.7 million square foot office building located in Rockville, Maryland. The capital structure included a senior financing coupled with a preferred equity investment, enabling the client to achieve a very attractive blended cost of financing while minimizing their downside risk. | |
| $168 Million Equity and Debt – First Industrial Portfolio – Long Island, NYCarlton arranged $168 million of debt and equity financing (89% of total capitalization) made up of senior debt and preferred equity for its client’s acquisition of a 3.4 million square foot industrial portfolio containing 35 separate properties located in Nassau and Suffolk Counties on Long Island, New York. | |
| $150 Million Equity and Debt – 1111 Pennsylvania Avenue – Washington, DCCarlton arranged $150 million of debt and equity capital for this 325,000 square foot office Property, one of only six private office properties on this street down the street from the White House. Carlton arranged joint venture equity capital from a domestic real estate fund. | |
| $140 Million Equity and Debt – 1775 Broadway “The Newsweek Building” – New York, NYCarlton arranged $140 million of senior debt and preferred equity financing for the Moinian Group’s purchase of this well situated, high profile midtown office tower. The capital for both transactions was provided by Goldman Sachs. | |
| $128 Million Equity and Debt – Texas Multifamily Portfolio – Dallas and Houston, TXCarlton was retained by the owner and purchaser of this portfolio of 2000 Class A apartment units located in Houston, TX. Carlton arranged $128 million of debt and equity financing (98% of purchase price). The preferred equity investment was provided by a commercial bank. | |
 Equity Recapitalization – 44 Wall Street, New York, NY
Carlton arranged a joint venture equity recapitalization on behalf of its client, a major development and management firm, for this prime, 99% occupied, 350,000 square foot office building located in the heart of Manhattan’s Financial District. Carlton accessed an overseas Norwegian equity source to provide the joint venture equity. It was this investor’s first U.S. investment and our third equity recapitalization transaction for the client. |
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 Equity Recapitalization – 90 Broad Street, New York, NYCarlton arranged a joint venture equity recapitalization on behalf of its client, a major development and management firm, for this Class A, 400,000 square foot office building located in the heart of Manhattan’s Financial District. Carlton accessed a major U.S. pension fund to provide the joint venture equity. |
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| $70 Million Equity and Debt – 415 Greenwich Street – New York, NY
Carlton assembled three separate lenders to provide $70 million of debt and equity financing (approximately 96% of the total project cost) for the condominium conversion of a 175,000 square foot office building located in Manhattan. |
