Simpson Thacher Represents The Carlyle Group in Acquisition of Prime Fifth Avenue Retail Property
04.29.08
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Simpson Thacher is representing The Carlyle Group's real estate fund in the acquisition of a joint venture interest that will own a prime retail property on Fifth Avenue in Manhattan from an affiliate of Kushner Companies. The retail property being acquired is the Fifth Avenue street level retail portion of the building located at 666 Fifth Avenue, which building was acquired in its entirety by Kushner in January 2007 for $1.8 Billion. At the time of Kushner's acquisition, 666 Fifth Avenue was then the highest acquisition price ever paid for a single building. Kushner and Carlyle are in the process of converting the building to a condominium ownership structure consisting of an office unit and a retail unit. Under the terms of the contribution agreement signed on April 18, 2008, a Carlyle venture is acquiring the interest in the retail unit by providing a combination of equity and subordinated debt and is obtaining third party senior and mezzanine financing. Kushner is retaining an interest in the retail property. The building is located in the prime Fifth Avenue retail corridor (between 52nd and 53rd Streets) and the retail tenants currently include the NBA Store, Brooks Brothers and Hickey Freeman. The transaction is expected to close in the second quarter of 2008.
The Simpson Thacher team includes Scott Kobak, Erik Quarfordt, Irina Petrova and John Lewis (Real Estate), Nancy Mehlman and Jenifer Marsh (Tax) and Jeanne Annarumma (Benefits).