Carlton Accesses over $3 Billion of International Capital for Large Manhattan Transactions
September 10, 2013
Please see below article from this month’s Real Deal which includes numerous quotes from Carlton Chairman, Howard L. Michaels, regarding international investors taking advantage of prime Manhattan real estate investment opportunities. The article also references certain of the over $3 billion of Carlton completed transactions which utilized international capital.
The completed Carlton transactions utilized either debt and/or equity from international capital sources to facilitate a transaction. Examples of transactions completed by Carlton with international investors include the $1.4 billion recapitalization of the General Motors Building (which facilitated the development of the number one Apple Store in America plus the expansion of the Madison Avenue retail), 737 Park Avenue, 150 East 72nd Street, 1180 Sixth Avenue, and 432 Park Avenue.
Please enjoy reading the article and feel free to contact us to help you capitalize your equity and debt needs on any large, important transactions which you may have.
Foreign exchange: TRD ranks city’s biggest overseas buyers September 01, 2013
Howard L. Michaels Quotes:
“We just came out of a period where people saw that not every investment paid off well,” said Howard Michaels, CEO of the Manhattan real estate banking firm the Carlton Group. Now “we’re seeing more direct investment because the investors want to have more control over their decisions, as opposed to bring part of a fund.”
“In 2006, when we recapitalized the General Motors Building for [developer] Harry Macklowe, we raised $300 million in equity from Germany,” Carlton’s Michaels said. “It used to be that German investors and lenders were super-aggressive. While there is still an interest from Germany, investors from the Middle East and Asia are much more aggressive.”
Michaels said lending can often be the easiest and fastest way for a foreign investor to avoid high taxes and risk.
“It takes time to develop a partnership relationship,” he said. “It takes less time to develop a debt relationship.”
