Distressed Office AcquisitionChicago, IL
- This 140,000-square-foot Class B+ building with underground parking in the suburbs of Chicago was in need of recapitalization.
- The challenge was to bring in fresh equity and cut a deal that made sense with both the borrower and the lender.
- Nigel Keenan helped source this investment opportunity, and purchased it directly from the bank in a short sale.
- The purchase price was approximately 60% below replacement cost.
- Risk was mitigated by a guaranteed termination fee of $10/square foot from a 100,000-square-foot tenant if they decided to terminate their lease early.
- Sold as part of larger portfolio sale just 12 months later.
- Total unlevered return of more than 20% on invested capital (debt + equity).