Carlton Closes $100M Lower Manhattan Condo, Hotel Pre-Development Loan

The Carlton Group has arranged a $100 million pre-development loan for a hotel and condominium project on Manhattan’s Lower East Side.

The Carlton Group, of New York, has arranged a $100 million pre-development loan for a hotel and condominium project on Manhattan’s Lower East Side, the CRE investment banking firm announced late last week.

Carlton reportedly accessed a balance sheet lender that provided proceeds in excess of the development partnership’s purchase price, with a capital cost of about 7 percent. The company characterized this pricing as “excellent given this was a high-LTV land transaction, with no pre-sales and an independent flag.”

Carlton Group did not respond to requests for further information, but it looks like a safe bet that the project in question is the prospective Public Hotel and condos being developed at 215 Chrystie St. by a joint venture of Ian Schrager and Steven Witkoff.

According to recently filed zoning documents reported on by ny.curbed.com, the 28-story building will have 367 hotel rooms on the first 17 floors, topped by 11 residences on levels 19 through 26. The architect is Beyer Blinder Belle, of New York and Washington.

Schrager currently operates one Public Hotel, in Chicago, and reportedly plans two more, both in New York: the one on Chrystie Street and one on the far West Side, according to the New York Post.

The nascent chain’s website describes the Public Hotel concept as taking the best from luxury, boutique and select-service hotels to create a new genre of hotel that provides “essential” services and spacious rooms at an affordable price. The Public Chicago’s rooms are described as being decorated in “a soothing, ‘no color’ color palette” that evokes “a sense of ease and comfort.”