Cardinal Investments Takes Chelsea Building in Manhattan for $92M

Carlton Advisory Services Inc. has arranged a $92 million financing package for a 159,000-square-foot office building at 511-541 West 25th St. in Manhattan. The acquisition is the latest Manhattan pickup for Cardinal Real Estate Investments L.L.C., a hedge fund based in El Segundo, Calif. According to a statement, Carlton Advisory Services, an affiliate of the Carlton Group, arranged a first mortgage with a balance-sheet lender and obtained mezzanine financing from a boutique money management firm. Despite the tough credit market, Carlton is reporting an busy start to 2008. In January, the investment bank cinched some $1 billion in deals, ranging in value from $92 million to $300 million. For its part, Cardinal Investments already owns properties in various Manhattan submarkets. The firm did not immediately disclose its specific plans for its newest Manhattan property, but its general strategy is to acquire, renovate, and reposition small to medium-size assets. It is particularly active in the multifamily sector.According to information on the company’s Web site, current plans in Manhattan call for bringing rents at a 10-unit apartment building on West 114th Street up to market value. On the other side of the borough, the firm plans condominium conversion for a 16-unit apartment building on East 70th Street on Manhattan’s Upper East Side. In addition to its Manhattan properties, Cardinal Investments also owns properties in Fiji and Southern California.