Carlton arranges $219m preferred equity recapitalization for Starrett-Lehigh building in Manhattan (US)

Carlton Advisory Services' Chairman Howard L. Michaels has announced that Carlton has arranged a $219 million preferred equity investment by a major, passive, investment fund for the recapitalization of the Starrett-Lehgih Building located in the West Chelsea section of Manhattan.

Carlton, which is one of the leading companies in the country for arranging large high profile equity recapitalizations, was able to quickly move and bring in an investor on a preemptive basis to fund the equity recapitalization. The Starrett-Lehigh Building, as well as the West Chelsea section of Manhattan overall, has experienced tremendous growth and anticipates large scale development activity with the conversion of former warehouse space to prime office or residential use, the continued success of Chelsea Piers, the construction of a state park along the Hudson River, the emergence and development of the meatpacking district and the extension of the #7 subway line.

The Starrett-Lehigh building is a 20-story, 2.3 million ft² office building located in the West Chelsea section of Manhattan. The property features large floor plates, high ceilings and 90% window coverage; attributes that cannot be reproduced in a new building under current zoning. Its stunning views of the Hudson River and the Manhattan and New Jersey skylines will be preserved forever because of the non-existence of developable parcels between the property and the river.

Originally zoned for industrial use, the Property's current owner was able to rezone the building and convert the space to offices from industrial and manufacturing. The property now boasts a significant, high-profile and credit-worthy tenant base including: US Customs, Tommy Hilfiger, Martha Stewart Omnimedia, FBI, Zurich American Insurance, Wiltel Communications, Verizon, Hugo Boss, among others. The property's value has risen substantially over the past couple of years, due mostly to improved performance and the overall bull market of Manhattan office buildings.

Carlton has distinguished itself as the preeminent real estate advisory firm for large, complex, equity and debt recapitalizations and high temperature acquisition structures. Over the past 12 months alone, the company has closed some of the largest deals in the country including The General Motors Building in New York, The Bank of America Center in San Francisco, Sears Tower in Chicago and 1111 Pennsylvania Avenue in Washington, D.C., Aegon Center in Louisville, among numerous others.

Carlton executives Michael Campbell and Joel Mazur assisted Mr. Michaels in arranging this complex capital package.

Source: Carlton

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