INDUSTRIAL
Case Study #1
Industrial Facility in the Illinois Medical District of Chicago
Engagement:
Partnership issues were creating friction in ownership. Property facing short term roll over risk, poor cash flow as well as property condition risk. General Partner and Limited Partner were close to legal action against each other.
Process:
Worked with General Partner and Key Limited Partner to negotiate terms of a separation agreement. Supervised cash flow and leasing management allowing key tenants to leave facility which in turn allowed a new national credit tenant to take occupancy. Had to get use exception from the Illinois Medical District which dictated certain restrictions for re-leasing buildings. Managed loan extension with first mortgage lender and managed oversight of new tenant occupancy.
Outcome:
Recapitalized asset. Increased property cash flow with longer term better credit tenant(s). Negotiated and managed buy-out of limited partner from general partner resulting in an 18% IRR to the limited partner. At time of engagement limited partner was facing loss of principal and various legal costs associated with disputes with general partner. General Partner was facing legal action from Limited partner. General Partner was able to retain ownership
