NEW YORK CITY — Carlton Group has arranged the $400 million sale of 701 Seventh Avenue, a mixed-use project in Times Square. Simultaneously, the company has secured $600 million in equity and debt capital to facilitate the acquisition and development of the property.
On Oct. 16, a group led by New Valley LLC, which is wholly owned by Vector Group Ltd., The Witkoff Group and Withrop Realty Trust, acquired 701 Seventh Avenue. The future value of the asset once completely built and sold out is estimated at more than $2 billion.
The mixed-use project is located at the intersection of 47th Street and 7th Avenue, which was declared the busiest intersection in Manhattan by the city of New York. The site includes more than 300,000 square feet of retail, signage and hotel.
Carlton Group procured two major investment groups to complete the $400 million controlling sale of the asset.
Additionally, on behalf of the buyers, Carlton Group arranged $600 million in capital to facilitate the acquisition and the future development of the project.
Steve Witkoff led the investment group that acquired the asset. He plans to develop the site into 85,000 square feet of retail, in addition to 24,000 square feet of LED signage that will stand 120 feet tall. The site is also suitable for a 500-room hotel.
With the help of Carlton Group Chairman Howard Michaels, Witkoff partnered with Mark Siffin of Indiana-based Maefield Development, who assembled the group of investors. Michaels then arranged $600 million of equity and debt capital to facilitate the transaction.
“Raising $600 million for something with no cash flow is near impossible,” Michaels says. “I was taken in with Siffin’s charisma and the brilliance of the plan.”