In one of the most high profile transactions to take place in Manhattan this year, Carlton Group Chairman, Howard L. Michaels along with his capital markets specialists, simultaneously executed both the $400 million investment sale, followed by $600 million of equity and debt capital raised to facilitate the acquisition and development at 701 Seventh Avenue in the heart of Times Square, New York.
On behalf of the contract vendee, Carlton accessed two major investment groups to acquire and complete the $400 million controlling sale of the asset. In addition, on behalf of the buyers, Carlton arranged $600 million of equity and debt capital to facilitate the acquisition and future development of this mixed-use project in one of the best locations throughout the city
The transaction involves over 300,000 square feet of prime retail, signage and hotel FAR directly in the center of Times Square, Manhattan. The stabilized value of this transaction is estimated to be greater than $2 billion.
Located at 47th Street and 7th Avenue, this location was recently declared by New York City as the #1 busiest intersection in Manhattan, situated directly opposite the TKTS Center in Times Square.
The investment group that acquired the asset is led by one of the most active, successful developers in New York over the last 30 years, Steve Witkoff, who intends to develop the site into 85,000 square feet of prime retail space and 24,000 square feet of LED signage that will stand 120 feet tall.
In addition, the site is “as-of-right” for a 500-room hotel and some of the top hotel firms in the world are at Witkoff’s doorstep vying for him to build a completed hotel in arguably the number one tourist destination in the world.
The site was sought after by some of Manhattans biggest developers, including certain of Manhattans largest REIT’s. Witkoff with Michaels as his exclusive advisor, were able to pull off the deal together. Additionally, Witkoff partnered with a little known, but highly talented Indiana developer, Mark Siffin of Maefield Development, who organized the assemblage over the last several years. Siffin, who has had many successes in Florida and California, was introduced to Witkoff by Michaels, who then proceeded to arrange $600 million of equity and debt capital to facilitate this transaction.
The Carlton chairman has been one of the top dealmakers on the Manhattan real estate scene over the last 30 years, which enabled him to execute the sale, raise all the equity and debt capital for this transaction and facilitate the partnership that will create one of the most incredible development projects in Manhattan.
