Corporate Overview - The Carlton Group

THE CARLTON GROUP
Corporate Overview
R E A L E S T A T E P R I VA T E E Q U I T Y B A N K E R S S I N C E 1 9 9 1
E QUITY & DEBT FINANCING
R A I S I N G PA S S I V E P R O M O TA B L E E Q U I T Y
R E C A P I TA L I Z AT I O N S
I NVESTMENT S ALES
S P E C I A L S I T U AT I O N S G R O U P & L O A N S A L E S
MERCHANT B ANKING
Table of Contents
I. Corporate Overview
II. Hospitality Division
III. Principal Investing Division
IV. European Division
V. MENA Division
VI. Landmark Transactions
VII. Carlton Senior Management
VIII.Contact Information
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Carlton is one of the world’s top real estate private
equity advisory firms focused on raising passive promotable equity from
high net worth, balance sheet, and institutional investors.
We specialize in providing multi tranche capital stacks designed to generate
superior terms and proceeds for our clients. We also excel at running a
competitive sales process which includes a global investor access designed
to maximize sales proceeds for our clients.
Carlton executes a global practice through our offices throughout the world.
NEW YORK
WEST PALM B EACH
D UBAI
LONDON
MADRID
ATHENS
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C ORPORATE O VERVIEW
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C ARLTON OVERVIEW
Corporate Overview
In business since 1991, Carlton is a market leader in completing large, complicated real estate
transactions throughout the world. We specialize in:
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Large structured equity and debt placement
Arranging joint ventures with passive promotable equity to fund virtually the entire capital stack
The sale and/or refinancing of large hospitality transactions
Investment Sales
Raising entity-level capital for large property owners and institutional sponsors
Providing valuation and loan sale services for financial institutions
Principal Investment and Merchant Banking
Carlton transacts business throughout the world, and our niche is in raising large amounts of equity
and/or debt for complicated transactions. We are also very creative and customize execution
strategies for complex real estate transactions in order to maximize proceeds for our clients. We
are a structured finance expert and specialize in organizing multi-tiered capital stacks, which
maximize terms and proceeds for our clients. More important, we have tremendous relationships with
non-traditional & non-conventional capital providers throughout the world. Often these capital
sources are more consistent and reliable than securitized finance sources, which are often
inflexible and difficult to deal with.
Equity & Debt Placement
Arguably, Carlton has completed more large and complicated equity and debt placements than virtually
any other company of its size. We are an industry leader in arranging large amounts of equity
and debt capital for private investors and institutional owners of real estate. We have closed well
over $100 billion of transactions, and our astonishing success is a product of our long term
relationships with numerous high net worth, balance sheet, and institutional capital providers
throughout the world.
Moreover as a consequence of our significant deal volume, we see all of the latest technologies with
respect to structuring transactions, which allows us provide our clients with the best possible capital
structure. We have a dedicated practice of accessing equity and debt from conventional and nontraditional capital sources, in addition to having strong relationships with all of the securitized finance
sources. We typically raise 80 to 95% of the equity for a particular transaction, by partnering our
clients with institutional or high-net-worth capital partners, who will put up a majority of the
equity capital and also pay a market rate promote to our clients. We also specialize in providing
creative capital solutions, which include multi-tiered capital structures and coordinating and leveraging
several lenders for a particular transaction.
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C ARLTON OVERVIEW
Recent Transactions Completed By Carlton
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701 Seventh Avenue – Arranged a $1 Billion equity and debt partnership to build a 42-story
Edition hotel, 76,000 sf of retail, and an 18,000 sf LED design in the heart of Times Square.
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Arranged $700 Million of equity and debt to facilitate a four building Manhattan acquisition of
apartment buildings to be converted into condominiums.
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Arranged $240 Million of equity and debt from five different investors from six different
countries to facilitate the acquisition of a highly valuable land site in the Financial District in
Manhattan to build a 70-story condominium tower.
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Arranged acquisition financing for Steve Witkoff and Ian Schrager to acquire a large land site
in West Hollywood to build an Edition hotel and branded condominium residences.
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Arranged $250 Million of preferred equity to facilitate our client’s acquisition of a large office
building in Brooklyn.
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Acquired through our Merchant Banking Group three apartment complexes in Columbus, Ohio
for over 1,000 apartment units at an approximate 8% capitalization rate.
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Have closed approximately $3 Billion in development transactions throughout Manhattan for
some of the top landlords in New York including Ziel Feldman, Steve Witkoff, Ian Schrager,
Elad, Starwood, and Howard Lorber’s Vector Group, Paramount Group, and Bizzi Group,
just to mention a few of the many clients and firms who Carlton does business with.
Accessing International Capital
Carlton is one of the top international real estate boutique firms specializing in accessing capital and
arranging joint ventures between foreign investors and local real estate operators. We have recently
either closed or hard circled more than $2 Billion of transactions with overseas investors.
Carlton has offices in London, Madrid, and Italy and has spent a huge amount of time traveling Asia,
accessing large amounts of Asian capital for New York transactions.
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C ARLTON OVERVIEW
Investment Sales
Over the last 20 years, Carlton has been one of the most successful investment sales and equity
recapitalization advisors in the world. We possess highly sophisticated modeling techniques, which
present our client’s assets in the best possible financial light.
Moreover, we maintain excellent personal relationships high net worth and institutional equity and debt
investors throughout the world. Our aggressive, hard-hitting negotiation style has continuously
maximized value and terms for our clients. Executives at Carlton have completed some of the largest
investment sales transactions in the world, including:
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The billion dollar sale of the Bank America Tower in San Francisco
The approximate one billion dollar trade of the Savoy Hotel Group
The sale of the Barbizon and Gotham Hospitality portfolios in Manhattan.
Moreover, since the credit crunch, Carlton has completed over $40 billion in transactions, including
the sale or controlling interest in 701 7th Avenue, One Park Avenue, 1180 Sixth Avenue, the retail
condominium at 666 5th Avenue, 14 Wall Street, 737 Park Avenue and numerous other large, highquality transactions.
Recapitalization & Restructuring
Carlton has been one of the most active and successful restructuring experts since the beginning of the
credit crunch, having completed over $30 billion of loan workouts and discounted loan payoffs in 2011
and 2012 alone. We have an in depth knowledge of both securitized and balance sheet financings, along
with an excellent understanding of the complex documentation and inter-creditor agreements which
guided these transactions. We are also totally conversant with the current “technology” which sets the
basis for a mutually acceptable loan restructure and/or modification.
Moreover, being one of the most prolific originators of securitized debt “pre-credit crunch”, we
understand how these mulit-tranched capital stacks work and have the unique ability to assess and
negotiate these documents with servicers and other secured parties. We also possess tremendous access
to non-traditional debt and equity capital sources which allow us to facilitate the funding of a DPO or
par payoff, which is presently how many over-leveraged loan positions are being satisfied.
Entity Level Equity Placement
Carlton has a dedicated practice of raising equity for entity-level, equity placements, which raises
programmatic capital for large property owners and institutional clients. This group has raised in excess
of one billion dollars of programmatic equity capital for various sponsors, pursuant to a pre-determined
business plan, promote structure and waterfall.
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C ARLTON OVERVIEW
Carlton Accredited Crowd Funding Platform
Carlton’s Accredited Crowd Funding Syndication Platform was formed to acquire and manage real
estate assets for Carlton's principals, partners and clients. The platform invests its own capital and raises
passive joint venture equity to acquire stabilized cash flowing commercial real estate assets. The
investment strategy is to take advantage of Carlton’s +20-year track record and finance relationships to
generate proprietary deal flow and assemble the most value-accretive and risk efficient capital structure
to maximize the value of commercial real estate assets. www.carltonaccreditedcrowdfunding.com
Principal Investment and Merchant Banking
Carlton’s principal transactions group, Carlton Strategic Ventures, owns and is the managing general
partner of over 3 million square feet of properties, which include:
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A 252,000 sf office building in Great Neck Long Island
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A 27 story student housing dormitory which includes a 90,000 sf retail mall and a 6 story 200,000
sf above grade parking garage.
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3 different apartment buildings in Ohio which aggregate over 1,000 apartments
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A triple net lease office building in New Jersey, which is leased to Tyco.
Carlton has passive investment interests in over $1.5 billion of real estate with Carlton Clients, who
operate these assets. Carlton also makes hard money loans on special situations and also invests general
partner equity with Carlton Clients.
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H OSPITALITY D IVISION
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H O S P I TA L I T Y D I V I S I O N
Hospitality Advisory
We are one of the top hospitality real estate advisory firms in the world as indicated by the numerous,
large and high profile hotel transactions that we have completed.
In 2013 Carlton closed over $2 billion of hospitality transactions. These transactions are as follows:
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$1 Billion 50-story Marriot Edition Hotel with 60,000 sf of retail – This was a marquee
transaction for Carlton whereby the firm arranged an equity joint venture between one of the top
institutional investors in the world and a highly successful entrepreneurial group. In addition,
Carlton brought in Marriott and Ian Schrager to do a 50-story Edition Hotel in conjunction with
60,000 square feet of prime retail and a 125 foot LED sign which will be the biggest LED sign in
the world. Initially, Carlton arranged $475 Million of acquisition capital and recently arranged
$815 Million of construction and mezzanine financing.
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$525 Million Structured Financing to Support Park Lane Hotel Acquisition – Although this
asset only generated $10 Million in net operating income, Carlton was able to arrange a very
attractive $525 Million structured financing. The capital stack included a senior lender who
provided inexpensive terms for the A note with a balance sheet lender who provided a junior first
mortgage which resulted in a good blended rate to the borrower.. Carlton’s loan facilitated the
acquisition and predevelopment for the Witkoff Group and a top Malaysian real estate investment
firm.
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$100 Million Chrystie Street Condominium and Hotel, New York - Carlton arranged a joint
venture between two prominent developers for the acquisition and construction of a 25-story
tower condominium and upscale 370 key hotel. In addition to arranging the partnership between
the iconic duo, Carlton also arranged a high leveraged land loan to facilitate the acquisition and
predevelopment of what is sure to be one of Manhattans most valuable residential and hospitality
properties.
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Leroy/West Street JV Equity and Debt Condo and Hotel - Carlton represented a highlysuccessful owner and operator in this $240 million project capitalization, which was completed
with the special situations group of a global investment bank. The highly-structured financing
allowed our client to convert a pre-war rental building in the Upper West Side to luxurious parkfront condominiums sprawling 2,500-3,500 square feet.
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$90 Million Hotel and Condo Acquisition at 8701 Collins Ave, Miami Beach -- Carlton
arranged an approximate $90 Million multi tranched capital stack, which facilitated the acquisition
and predevelopment of an existing 227 key hotel plus two adjacent parcels, which in the aggregate
consist of 188,000 square feet.
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H O S P I TA L I T Y D I V I S I O N
Hospitality Advisory
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$225 Million Investment Sale and Recapitalization at the Shore Club, South Beach–
Carlton arranged a $225 Million investment sale and recapitalization of the iconic 300 key hotel
which will be converted into a 5-star boutique hotel and luxury condominium. Carlton arranged
the highest sale price for any hotel in Miami in 2013.
In addition in 2012, we closed the largest single-asset trade in Europe when we successfully
funded the discounted loan pay-off and recapitalization at the Four Seasons Milan. In 2011, we
represented Paulson & Co. and Winthrop Realty Trust in the $4 billion UCC Sale of the CNL/MSREF
portfolio. This portfolio included some of the finest hospitality assets in the world, such as the Grand
Wailea Resort & Spa, the Claremont Hotel Club & Spa and the Ritz-Carlton Grand Lakes.
Moreover, Carlton has been responsible for many notable hotel transactions including the Trump SoHo
in New York and the Morgan’s Hotel Group Portfolio, consisting of the Delano Hotel in South Beach
and the Mondrian, Morgan’s and Royalton Hotels in New York. In addition, Carlton executed the sale
of the Barbizon Hotel and Gotham Hospitality Portfolio in Manhattan.
The Co-Heads of Carlton’s Hospitality Division have also been responsible for some of the largest
hotel transactions throughout Europe, such as the Savoy Hotel Group portfolio, comprised of such
assets as the Savoy Hotel, the Claridge’s Hotel, the Connaught and the Berkeley Hotel in London. They
also represented ITT Sheridan, who was the largest hotel company in the world at such time, on the
acquisition of the CIGA Hotel Group, comprised of the numerous five-star hotels like the Hotel
Danieli in Venice, the Di Savoia in Milan and the Meurice in Paris.
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H O S P I TA L I T Y D I V I S I O N
Select Completed Hospitality Transactions
The following represents certain of our completed hotel transactions:
› Morgan's Hotel Group Portfolio, $580 Million – We acted as the exclusive capital advisor for the
Morgan's Hotel Group, by arranging a $580 million fee financing of the Delano, Mondrian, Royalton and
Morgans Hotel. This was a very aggressive financing which provided the owners with a substantial cash out.
› Trump SoHo, $335 Million – We acted as the exclusive capital advisor where we arranged $335 million of
construction and mezzanine financing for the ground-up development of this 46-story, 391 unit luxury
condominium-hotel in the heart of the famous SoHo District of Manhattan.
› CNL/MSREF Hotel Portfolio, $4 Billion (UCC Foreclosure Sale) – We represented Paulson & Co. and
Winthrop Realty Trust on the $4 billion mezzanine UCC foreclosure sale for the CNL/MSREF Hotel
Portfolio comprised of some of the finest hospitality assets in the United States.
› Gotham Hotel Portfolio, $132 Million – We acted as the exclusive capital advisor to Gotham Hospitality
Group in the $132 million sale of six boutique hotels in Manhattan, bringing in Credit Suisse as the buyer of
this portfolio totaling 656 keys.
› Barbizon Hotel, $100 Million – We acted as the exclusive sale advisor on behalf of Ian Schrager Hotels
and NorthStar Capital Investment Corporation executing the $100 million sale of this 306 key, luxury hotel
and spa located in Midtown Manhattan.
› European Hotel Transactions – As further highlighted in the following “European Division” section, we
have also completed certain of the most high-profile hotel transactions ever occurred throughout Europe.
Such transactions include the a) €800 Million Sale of The Savoy Hotel Group Portfolio in London, United
Kingdom; b) €685 Million CIGA Hotel Group Portfolio of Europe's Most Luxurious Hotels in Italy &
France; c) Exclusive Advisor for the Villa d’Este Recapitalization, Situated on Lake Como, Italy; d) €84
Million City Hotels, S.A. Portfolio of Hotel Assets Located Throughout Belgium and the Netherlands; and
e) Most Recently, We are in Hard Contract to Close on the €300 Million Recapitalization for one of Italy’s
Most Iconic Hotels; f) Exclusive advisory on the sale of the 5-Star Westin Valencia Hotel from one of the
top Spanish financial institutions.
CNL/MSREF Portfolio
Westin Savannah
21-C Museum Hotel
Las Vegas, NV
Savannah, GA
Louisville, KY
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E UROPEAN D IVISION
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E UROPEAN D IVISION
Carlton Europe
The Carlton European Division has one of the largest real estate private equity real estate capital
markets intermediary teams in the world, who in total have executed billions of transactions throughout
Europe.
• Javier Beltran - Head of Carlton Spain and Portugal, based in Madrid, who was previously a senior
executive at UniCredit and Barclays, Morgan Stanley and UBS
• Mads R. Loewe – Head of Carlton Group in London, who is a European and U.S. real estate
expert with over ten years of experience at Partners Group and DLA Piper, among other,
• Anthony F. Marando – Managing Director of Carlton Group in Italy, is a veteran of the
commercial real estate market and has personally originated and placed over $1 billion of
commercial real estate and corporate transactions and
• Ignacio Otero, Director at Carlton Spain, who previously worked for ING Real Estate, Deutsche
Bank and Merrill Lynch, among others.
The European Team also benefits from a strong international presence in the U.S. with Robert Mudry,
who is a former Salomon Brothers and Drexel Burnham investment banker and has been involved in
more than $1 billion of hospitality transactions.
In addition, Carlton’s Hospitality Division the Co-Head Brendan Sullivan and John Bralower have
decades of European hospitality experience and have completed several billion of European hospitality
transactions, certain of which are summarized in this presentation. In fact, In addition, Carlton Group
is presently the exclusive advisor for the acquisition of one of Europe’s most iconic contemporary
hotels, one of Europe’s most fabled, historic grand hotels and have just been hired as the exclusive
capital advisor for a 3,000-key hospitality acquisition, valued in excess of €300 million.
Carlton Group’s European Special Situations Group focuses on providing financial institutions
with sophisticated valuation and strategic advice, which ultimately leads to a customized
disposition strategy. We also specialize in representing large property owners and bringing
them equity and debt capital to facilitate recapitalizations, acquisitions and the buying of their
debt back from their financial institutions at a discount.
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E UROPEAN D IVISION
Current European Investment Advisory Activity
The following represents some of our European exclusives:
› €500 Million Italian Recapitalization – We exclusively represent a large Italian property investor, who
owns a multi-million square foot mixed-use asset that is net leased under a long-term lease, and we are
advising them in connection with the recapitalization of the property..
› €30 Million Hospitality Sale Advisory Mandate – We are the exclusive adviser to a large international
institutional investor for the sale of two performing 4-star business hotels in the metropolitan areas of
two gateway cities in Germany.
› €200 Million Large Land and Development Financing in Luxembourg – We represent a successful
European owner and developer, and are raising €200 million in financing to facilitate his large mixed-use
development in Luxembourg.
› €42 Million Spanish Car Park – We are the exclusive advisor to owner on the sale of this large and well
located car park asset.
› €85 Million Best Large Luxury Resort of Mainland Spain – We are the exclusive advisor on the
capital increase and/or sale of best Spanish large luxury resort & its attended residences’ development.
› Madrid (Spain) Shopping Center – We are exclusively advising the owner on the sale of this cash
flowing commercial real estate asset in the capital of Spain.
Closed European Landmark Transactions
The following represents certain of our more notable completed European transactions:
› €250 Million Recapitalization of the Four Seasons in Milan – Carlton brought in a London based
investment management firm that enabled our client to buy back their maturing first mortgage from one
of the top financial institutions in the world at a discount to recapitalize one of the most iconic
European hotels in a major city.
› £35 Million Residential Development Recapitalization in London – Carlton raised a £35 million
mezzanine financing facility for the refinancing of a 1,250 acre mixed-use estate of residential and
commercial properties in Oxfordshire, United Kingdom.
› Westin Valencia - Carlton sold 100% of the operating company of this 5-star luxury hotel managed by
Starwood Hotels & Resorts to a German hotel operator, which was not previously known by the seller, a
large Spanish bank.
› Savoy Hotel Group Portfolio, €800 Million – The President of Carlton’s Hospitality Division
completed the €800 Million sale of The Savoy Hotel Group portfolio, which was comprised of London’s
finest five-star hotel assists including The Savoy Hotel, Claridge’s Hotel, Connaught Hotel and the
Berkeley Hotel.
› CIGA Hotel Group Portfolio, €685 Million – The President of Carlton’s Hospitality Division on
behalf of ITT Sheraton, who was the largest hotel company in the world at the time, completed the
€685 Million sale of a portfolio comprised of some of Europe's most luxurious hotel assets. The
portfolio was comprised of the Hotel Danieli in Venice, The Grand Hotel in Rome, Hotel Principe Di
Savoia in Milan and The Meurice in Paris.
› Villa d’Este, Lake Como – The President of Carlton’s Hospitality Division served as the advisor on
the recapitalization of what is considered to be one of the greatest grand hotels in the world, the Villa
d’Este, which is a ultra luxury, five-star renaissance patrician resort hotel located on the famous Lake
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Como in Cernobbio, Italy.
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MENA D IVISION
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MENA DIVISION
Carlton MENA
Carlton MENA has been established to provide a local presence in Dubai in order for Carlton to better
service its MENA region clients. Our professionals, as outlined below, speak multiple languages and
originate transactions for local MENA region developers and owners in addition to accessing capital
from throughout the region to invest in Europe and the United States.
Our group is dedicated to identifying the best local transactions in order to provide great investment
opportunities to our clients. There has been an overwhelmingly positive response to Carlton’s ability to
secure passive promotable equity from large institutional firms rather than attempting to secure capital
from a large number of private investors as is common practice throughout the region today.
Through its extensive network of sovereign wealth funds, pension funds, private equity groups, family
office and lenders, Carlton MENA offers regional developers unparalleled access to institutional
investors for their capital raising needs as well as expertise in implementing international quality
processes and procedures during the entire development cycle. Carlton MENA also offers regional
investors access to both international and local investment opportunities across the risk return
spectrum. As such, the Carlton MENA team is truly unique in its understanding of both developed
markets in the West and developing markets in the Middle East.
Carlton’s MENA division includes
• Navish Chawla – Chief Investment Officer with primary responsibility for overseeing the firm’s
principal investment strategy and business development initiatives. Mr. Chawla has 10+ years of real
estate experience including positions within Private Equity and Global Investment Management.
• Mads R. Loewe – Mr. Loewe has 10 years of global private equity and real estate experience
covering both the United States and Europe. Mr. Loewe is also a highly accomplished international
corporate and private equity attorney, having advised on some of the largest deals in the world.
• Andrew Karaan – Financial Analyst of Lebanese American descent with as MS in Finance from
Washington University in St Louis.
Current MENA Investment Advisory Activity:
› $300 million in debt and equity for the development of the world’s first rotating tower in
Dubai – We represent a successful developer in the MENA region and are raising $294 million in
financing to facilitate this mixed-use hotel and residential development.
› $140 million construction loan for a stalled condominium development project on the Palm
in Dubai
› $33 million bridge loan for land acquisition and predevelopment of ultra-high end boutique
hotel with luxury car showroom and racetrack
› JV Equity partner for Phase II of a resort-style luxury estate development encompassing 100
villas
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L ANDMARK T RANSACTIONS
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701 Seventh Avenue
New York, NY
$1 Billion JV Equity and Construction Placement
for a 50-Story Edition Hotel, 60,000 sf of Retail
and 125 foot LED Sign
This was a marquee transaction for Carlton whereby the firm arranged $1.2 Billion of acquisition and construction
financing to facilitate the acquisition and current construction of a 50-story Edition Hotel in conjunction with 60,000
square feet of prime retail and a 125 foot LED sign which will be the biggest LED sign in the world. In addition, Carlton
made the joint venture between Marriott, Ian Schrager and the Edition brand to the ownership group which included
highly successful developer Steve Witkoff.
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125 Greenwich Street
New York, NY
$240 Million of Structured Debt and Equity
for the Acquisition and Predevelopment of an
80-Story Luxury Condominium Tower
In one of the largest post-credit-crunch Manhattan land acquisitions, Carlton raised $240 million of structured
debt and equity from six different institutional and high net worth investors, from five different countries. This
was a highly-time-sensitive transaction which highlighted Carlton's unique ability to access and coordinate a
highly beneficial capital structure for the sponsor – which included a Singaporean first mortgage lender, one of
the wealthiest individuals in India, along with a Chinese equity investor, and three high net worth equity
investors which comprised the sponsorship. The property will contain approximately 130 residences and over
15,000 square feet of ground floor retail. The property is at the epicenter of the Downtown Manhattan
renaissance, which is occurring as a result of the investment of billions of dollars of public and private capital.
Park Lane Hotel
New York, NY
$616 Million Structured Financing to Support
Park Lane Hotel Acquisition
Although this asset only generated $10 Million in net operating income, Carlton was able to arrange a $616 Million
structured financing. The capital stack included a senior lender who provided inexpensive terms for the A note with a
balance sheet lender who provided a junior first mortgage which resulted in a good blended rate to the borrower.
Carlton’s loan facilitated the acquisition and predevelopment for the Witkoff Group and a top Malaysian real estate
investment firm.
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One Madison Park
New York, NY
Advised HFZ Capital on the Acquisition of this
50-story Condominium Tower
This was one of the most sought after assets during the recent downturn in 2010. Carlton facilitated this transaction by
enabling HFZ to acquire a second lien on the property which gave them standing to obtain the fee simple interest.
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215 Chrystie Street
New York, NY
$100 Million JV Equity and Bridge Financing
Carlton arranged a joint venture between two prominent developers for the acquisition and construction of a 25story tower condominium and upscale 370 key hotel. In addition to arranging the partnership between the iconic
duo, Carlton also arranged a high leveraged land loan to facilitate the acquisition and predevelopment of what is
sure to be one of Manhattans most valuable residential and hospitality properties.
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432 Park Avenue
New York, NY
$400 Million Construction Financing
Carlton arranged $400 million of construction financing from one of Europe's largest private foundations who
utilized their balance sheet to provide the financing for the development of what will become the largest
residential tower in Manhattan at 432 Park Avenue. The property is a planned 95-story tower at East 57th Street
and Park Avenue that when complete will soar past its nearest competitor by 400 feet. The borrower was
extremely satisfied with this loan Carlton arranged as we provided them with low priced and flexible finance that
was also non-recourse.
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666 Fifth Avenue
New York, NY
$525 Million Investment Sale & Recapitalization
Carlton represented Kushner Companies in the $525 million investment sale and recapitalization at 666 Fifth
Avenue. This transaction was put together during the market downturn and Carlton was able to access an
entrepreneurial and institutional investor who paid $525 million which was a 2-cap at the time for a 49% interest
in just the retail at this 1.5 million square foot office building on Fifth Avenue. This transaction demonstrated
Carlton’s ability to access capital during the financial crisis which essentially saved the owner’s $500 million equity
investment.
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340-344 West 72nd Street
New York, NY
$202 Million Condo Conversion Financing
Carlton represented a highly-successful owner and operator in this $240 million project capitalization, which was
completed with the special situations group of a global investment bank.
The highly-structured financing allowed our client to convert a pre-war rental building in the Upper West Side to
luxurious park-front condominiums sprawling 2,500-3,500 square feet..
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General Motors Building
New York, NY
$1.4 Billion Recapitalization
At two million square feet, the General Motors Building is arguably the highest profile office tower in
Manhattan. Carlton arranged the $1.4 billion equity recapitalization on behalf of our client, Harry Macklowe, by
bringing in a German closed-end fund to partner with him for the additional $300 million of equity needed to
complete the deal.
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Trump SoHo
New York, NY
$335 Million Construction Financing
Carlton acted as the exclusive capital advisor for this Donald Trump project, in which we were able to arrange
the $335 million construction and mezzanine loan financing for the ground- up development of this luxury, 46story, 391 unit condominium- hotel. This 385,000 square foot project was the first of its kind in the exclusive
and highly desirable SoHo section of Manhattan, as the neighborhood has some of the most regulated
development restrictions throughout the entire city as per its historic nature.
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Manhattan House
New York, NY
$800 Million Debt & JV Equity Capital Placement
A prime one million square foot, 583 unit residential building converted into condominiums. Carlton arranged
$800 million of debt and equity financing for the largest condominium conversion in the history of Manhattan
by orchestrating the joint venture partnership between a major real estate investment fund and a high profile
developer. We also arranged a $600 million plus mortgage.
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Ian Schrager /
Morgan's Hotel Group
New York, Miami & San Francisco
$580 Million Refinancing
A luxury boutique hotel portfolio comprised of 1,516 keys. The hotels in the portfolio were the Morgan’s, the
Royalton and the Hudson in New York City, the Delano in Miami and the Clift Hotel in San Francisco. Carlton
acted as the exclusive capital advisor for the Morgan’s Hotel Group, in which we were able to arrange $580
million to refinance their entire luxury hotel portfolio which consisted of the most notable boutique hotel assets
in the country.
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Bank of America Tower
San Francisco, CA
$860 Million / $1.1 Billion Debt & Equity Capital
Placement and Investment Sale
Carlton arranged $860 million of equity & debt capital from a major Canadian REIT and an investment bank on
this 1.8 million square foot, trophy office asset in the heart of San Francisco. 18 months later, without the clients
executing one lease, we were able to bring in an Asian investor who acquired the property of $1.1 billion,
resulting in a $240 million gain for our clients.
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311 South Wacker Drive
Chicago, IL
$309 Million Debt & Equity Capital Raise
Carlton arranged $244 million of senior financing and $65 million of institutional equity capital, which
combined represented 90% of the total capitalization that allowed our client Mark Karasick to joint venture with
this major investment bank we brought in to partner with him on acquiring this 1.4 million square foot, Class-A,
trophy office asset in Chicago’s West Loop.
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Rincon Hill Phase II
San Francisco, CA
$230 Million Debt & Equity Capital Raise
Carlton arranged the joint venture between a major insurance company and a local developer to acquire and
construct a ground-up, 50-story luxury residential tower in the Rincon Hill section of San Francisco, California.
This represented 90% of the total equity in the transaction and we also arranged the $125 million construction
loan from a balance sheet lender..
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14 Wall Street
New York, NY
$303 Million Investment Sale and
Recapitalization
Carlton facilitated the $303 million investment sale and recapitalization at 14 Wall Street in Lower
Manhattan. For this transaction, Carlton accessed a Ukranian born billionaire who acquired this property on
an all-cash basis at a 3% cap rate. This valuation was one of the highest for downtown and the owner was
able to maintain a continuing interest in the property. This was an amazing execution, as the subordinate
lender had commenced a foreclosure action against the owner.
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Four Seasons Milan
Milan, Italy
€250 Million Discounted Note Payoff
Carlton accessed a London based investment management firm to facilitate the €250 million recapitalization of
this iconic, five-star hotel in one of Europe's premier cities. The existing mortgage was approaching maturity and
we assisted our client in negotiating to buy back this loan at a discount from one of the largest financial
institutions in the world, bringing in a new lender to execute the transactions, which closed in late 2012.
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Carlton Services
The Savoy Hotel
Group Portfolio
2012 Closed Transactions
The following represents selected transactions, which Carlton completed in 2012.
London, United Kingdom
€800 Million Portfolio Sale
Portfolio consisting of London's finest five-star hotel asset. Carlton's hospitality executives executed the $800
million sale of the Savoy Group Hotel Portfolio, which was comprised of The Savoy Hotel, Claridges Hotel,
Connaught Hotel and the Berkeley hotel.
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CIGA Hotel Portfolio
Italy & France
€685 Million Portfolio Acquisition
Hotel portfolio comprised of some of Europe's most exclusive and luxurious hotel assets in Rome, Venice and
Milan, Italy and Paris, France. Carlton Hospitality Division Co-Head, John Bralower, represented ITT Sheraton,
who was the largest hotel company in the world at the time. The Co-Head of our Hospitality Division executed
the acquisition on this portfolio, which included the Hotel Danieli in Venice, The Grand Hotel in Rome, The
Meurice in Paris, France and Hotel Principe Di Savoia in Milan.
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Carlton European Representative Transactions
Villa d’Este
Cernobbio, Italy (on Lake Como)
Exclusive Advisor
Carlton hospitality division Co-Head & President served as the advisor on the recapitalization of what is
considered to be one of the greatest grand hotels in the world, the Villa d’Este, which is a ultra luxury, five-star
renaissance patrician hotel situated on the famous Lake Como, Italy.
42
C ARLTON S ENIOR M ANAGEMENT
Howard L. Michaels, Chairman & Founder
Mr. Michaels is Owner and Chairman of the Carlton Group. Since 1990, Mr. Michaels has been
instrumental in the marketing, sale and financing of almost $100 billion of commercial and residential
assets through the Carlton Group and its related entities. In addition to his responsibilities as Chairman,
Mr. Michaels directs Carlton’s loan sales and debt and equity placement activities. In this capacity, he has
established a reputation as one of the nation’s foremost dealmakers, and has arranged capital for such
notable transactions as The General Motors Building, Manhattan House, 666 Fifth Avenue, and the
Starrett-Lehigh Building in New York, among numerous others. He is a graduate of American
University with a BS in Business Administration.
Michael J. Campbell, Partner
Mr. Campbell has over 15 years of commercial real estate experience. Since joining Carlton in 1998, he
has been integrally involved in the structuring and procuring of equity and debt capital for over $60
billion of real estate projects around the world as well as a senior member of Carlton’s principal
business. Prior to joining Carlton, Michael spent five years at various Prudential real estate groups
including PRG, PCG and PMCC. He has extensive experience in all facets of real estate investments
including: complex equity and debt capital structuring, business origination & development, loan/REO
auctions and underwriting for all property classes. Michael has a degree in Financial Engineering from
James Madison University and a master’s in Real Estate Finance and Investments from New York
University.
Kevin Swill, Chief Operating Officer
Mr. Swill oversees the day-to-day operations of Carlton, as well as plays both a key role in growing the
firm’s high net worth equity syndication business and in expanding Carlton’s investment sales division.
Mr. Swill has 23 years of commercial real estate and investment banking experience. Prior to Carlton he
was the President of Westminster Capital and Kushner Properties, where he oversaw the financing of
acquisitions and recapitalizations, as well as the disposition of more than 13,000 apartments units.
Previously, Mr. Swill held positions at Merrill Lynch, CIBC, Deutsche Banc, and Citicorp/Citibank. Mr.
Swill is a member of the Real Estate Board of New York (REBNY); the National Association of
Industrial Office Properties (NAIOP); and International Council of Shopping Centers (ICSC); and is an
Executive Board member on the National Multihousing Council (NMHC). Mr. Swill holds Series 7 & 63
licenses. Mr. Swill received a Bachelor’s Degree in finance and business administration from Muhlenberg
College.
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C ARLTON S ENIOR M ANAGEMENT
Navish K. Chawla, Chief Investment Officer
Mr. Chawla serves as the Chief Investment Officer for the Carlton Group with primary responsibility
for overseeing the firm’s principal investment strategy and business development initiatives. Mr. Chawla
has 10+ years of real estate experience including positions within Private Equity and Global Investment
Management. Mr. Chawla has underwritten and managed over $2+ billion of real estate transactions
globally. Prior to joining the Carlton Group, Mr. Chawla served as a portfolio manager for a private
equity fund with responsibility of overseeing the company’s $2.0 billion portfolio across the U.S and
Western Europe. His prior roles include acquisition and asset management for Blackrock’s core and
value-add funds. Mr. Chawla graduated Sum Cum Laude with a Master’s degree in Real Estate from
New York University and holds a Bachelor’s degree in Finance/Economics from Rutgers University.
Daniel Bildner, Managing Director & General Counsel
Mr. Bildner is a Managing Director and the General Counsel of The Carlton Group and its related
companies. In addition to his role as general counsel, Mr. Bildner is involved in Carlton’s advisory,
consulting, principal transaction and workout and restructuring businesses. He has over 15 years of
experience in the real estate industry. Most recently, Mr. Bildner was vice president and general counsel
of Armstrong Capital Management LLC, an owner and operator of nearly 3 million square feet of retail,
shopping center, office, and multifamily properties, where in addition to being the chief legal officer of
Armstrong, he also oversaw and led the acquisitions, financings, restructures and joint ventures of the
company. Prior to that Mr. Bildner was a partner at the international law firm of Greenberg Traurig,
LLP where he practiced in the Real Estate Department for twelve years handling numerous complex
acquisition, financing, construction and joint venture matters.
Jeffrey Kosow, Managing Director
Mr. Kosow is the Director for new development real estate projects and is responsible for structuring
these transactions, as well as maintaining relationships with major developers. Mr. Kosow has over 35
years of experience as an owner, developer, and manager of multi-family and commercial properties
throughout New England, NYC, and South Florida. Over the course of his career he has owned and
partnered in more than 4,500 rental and condominium apartment units, 1,500 of which have been
developed from the ground up, as well as commercial, retail, and hospitality properties. Mr. Kosow has
arranged acquisition, construction, conversion, lines of credit and permanent financing for more than
$2 billion of real estate transactions. His equity partners in development projects have included
Chevron, Dean Witter, and California Edison. Mr. Kosow’s community and philanthropic activities have
included being an Associate Trustee for the University of Pennsylvania, a member of The President’s
Club at Brandeis University, and a member of the Prime Minister’s Club for the State of Israel Bonds.
Mr. Kosow is a graduate of the Wharton School at the University of Pennsylvania, and holds a BS in
Economics.
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C ARLTON S ENIOR M ANAGEMENT
Javier Beltran, Managing Director & Head of Carlton Spain & Portugal
Mr. Beltrán is Managing Director of The Carlton Group Iberia and has more than 19 years of
investment banking, real estate and capital markets experience throughout Spain, Portugal and other
European jurisdictions. Most recently, he was a Managing Director of UniCredit Spain Investment
Banking Division, and he had previously worked for UBS, Morgan Stanley and Barclays Capital. Over
his career, Mr. Beltrán has completed more than $20 billion in European transactions, including a wide
spectrum of equity and mezzanine investments and direct lending transactions. Between other many real
estate and retail transactions, Javier has worked in: the IPOs of Inmobiliaria Colonial, Ferrovial and
Inditex, various syndicated loans for large real estate companies, such as Metrovacesa and I. Colonial,
and FCC’s restructuring of its real estate portfolio. He holds a PDG degree from IESE Business School
and graduated from CUNEF with a Bachelor’s degree in Business Administration & Finance.
Brendan P. Sullivan, Managing Director & Co-Head of Hospitality
Division
Mr. Sullivan has executed hospitality-related principal and advisory transactions with a market value in
excess of $5.0 billion. Prior to joining Carlton, Mr. Sullivan was President of Stephen W. Brener
Associates/InterBank Brener Hospitality, where he was responsible for the company’s three primary
business lines: Investment Banking and Principal Activities; Advisory and Brokerage Services; and
Strategic Relationships. His major clients included Marriott International/Host Marriott, Ladbroke
(Hilton), FelCor Lodging Trust, Thayer Lodging Group and the Port Authority of NY and NJ, among
others. Mr. Sullivan has also been the Regional Director of the Americas for London-based Knight
Frank Access and was on the Advisory Board for New York University’s Tisch Center for Tourism and
Hospitality. Mr. Sullivan began his career as an Investment Banker.
David Tessier, Managing Director & Co-Head of Hospitality Division
Mr. Tessier is a highly successful Hospitality and Gaming industry veteran, principal and advisor who
has been substantially involved in well over $10 billion of transactions while holding senior financial
positions at Hilton Hotels Corporation, Marriott International, Ian Schrager Hotels, Intercontinental
Hotel Group and played a key role as restructuring consultant then Chief Investment Officer of the
highly successful real estate and hospitality company, Turnberry Associates who developed, owns and
manages the Fontainebleau Resort, the Aventura Mall and numerous other highly successful properties.
Mr. Tessier also is the former Chief Financial Officer of Kerzner International Resorts and was actively
involved in all of their resort operations, gaming, development and $5 billion plus privatization
transaction. Mr. Tessier will be providing an array of sophisticated hospitality services to Carlton’s
hospitality clients including providing high level capital markets advice and strategic consulting where
appropriate. Mr. Tessier is a master technician and understands all facets of the hospitality business
which will provide him with unique insight into helping clients to satisfy their hospitality objectives,
including raising large amounts of capital, transaction support and repositioning or rebranding of assets.
45
C ARLTON S ENIOR M ANAGEMENT
John Bralower, Consultant
During his career, Mr. Bralower has completed over $20 billion of debt, equity, corporate finance, M&A
advisory and leasing transactions for many of the real estate and hospitality industry’s leading
companies. Mr. Bralower’s positions prior to joining Carlton include Managing Director and co-head of
global real estate investment banking at Houlihan Lokey Howard & Zukin and President of
Sonnenblick-Goldman Company. Mr. Bralower is a member of the board of the Lincoln Center
Corporate Fund’s Real Estate and Construction Council and of the advisory board of Distressed Assets
Reporter. He is a Trustee Emeritus of the Advisory Board of New York University’s Tisch Center for
Tourism and Hospitality and is also a member of the New York State Bar and the Chairman of the
Planning Board of the Village of Oyster Bay Cove. Mr. Bralower has been quoted and featured in
industry and mainstream publications, including the New York Times, the Wall Street Journal and the
New York Observer. His speaking engagements have included the New York University and UCLA
hotel investment conferences, the NYU Real Estate finance conference and the IH&RA Annual
Congress in London.
Stephen Scorgie, Managing Director
Mr. Scorgie is Managing Director and head of Carlton’s Florida office. He has over 20 years of
experience securing billions of dollars of debt and equity financing for various types of real estate as
well as buying and trading loans and REO as a principal and selling loans as a financial advisor to large
financial institutions. Mr. Scorgie was involved in trading billions of dollars in assets of varying product
types for a variety of financial institutions including large banks, insurance companies and special
servicers. Mr. Scorgie has been with Carlton for 16 years. Prior to working at Carlton, Mr. Scorgie was a
Director at Ocwen Financial during which time Ocwen was recognized as the largest buyer of distressed
commercial and residential loans in the market. Mr. Scorgie started the small commercial distressed loan
division and then was the head of business development. He has a BA from the University of Virginia
and MBA from the University of Virginia’s Darden School of Business.
Mads R. Loewe, Director & Head of Carlton London
Mr. Loewe has 10 years of global private equity and real estate experience covering both the United
States and Europe. Prior to joining the joining Carlton, Mr. Loewe specialized in the mezzanine debt and
preferred equity investment in real estate assets in key global gateway cities for one of the largest private
equity fund managers in the world with over $30 billion in AuM. Mr. Loewe is also a highly
accomplished international corporate and private equity attorney, having advised on some of the largest
deals in the world while also distinguishing himself by his commitment to give back to the community,
which has earned him the Empire State Counsel nomination by the New York State Bar Association.
Mr. Loewe received his MBA from the Wharton School, University of Pennsylvania and also holds
Master of Law degrees from Boston University and University of Copenhagen. Mr. Loewe has lived
and work on three continents and speaks French, Russian, Danish, Spanish, Swedish and Norwegian.
46
Contact information
Howard L. Michaels
Chairman and Founder
P: 212.545.1000
F: 212.545.8110
[email protected]
Michael J. Campbell
Partner
P: 212.716.5611
F: 212.545.8110
[email protected]