MANHATTAN — AFC Realty Capital has arranged $13.5 million in financing to acquire and redevelop the Carlton Hotel in the heart of South Beach, Miami Beach’s historic art deco neighborhood.

The financing package includes an $8 million, non-recourse bridge loan for the acquisition of the 67-room hotel, and $5.5 million of construction financing for an ambitious revitalization program that includes both renovation and new construction, reports the Manhattan-based real estate investment firm.

"The sponsors plan cosmetic renovations to fully restore the existing building’s natural charm, style, character and elegance, and a new, four-story annex that would house an additional 39 one-bedroom suites," notes Adam Horowitz, the AFC Managing Director who originated and placed the financing.

The sponsors will market the additional suites as condominiums and pre-sell the units. The sales of the additional units will allow the borrower to pay off the loans in their entirety. The sponsors will retain the original rooms - 64 after the renovation - and derive additional revenue from the condo hotel units.

Located at 1433 Collins Ave., a half block off the beach, The Carlton Hotel is an elegantly restored 1938 property. The building completed a million dollar renovation in 1999 and another in 2004 affecting its lobby area, bar/lounge and swimming pool area. The four-story annex was approved by The City of Miami Beach Historic Preservation Board in 2004.

AFC Realty Capital is an innovative real estate investment banking firm specializing in debt and equity financing, investment, development, and consulting/advisory services. The firm has been instrumental, both in a principal and advisory capacity, in financing, investment and development transactions aggregating in excess of $10 billion.


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