"Distressed Debt Investing: The Hancock Tower & Garage"
Publication type: Case study
Research Archive Topic: Real Estate
It's 2008, just two years after Broadway Partners bought Boston's Hancock Tower & Garage for $1.35 billion, and Normandy Real Estate Partners and Five Mile Capital Partners see an opportunity. With a frozen credit market, Broadway would find it almost impossible to refinance its mezzanine loan maturing in January 2009. Normandy and Five Mile form a venture to target weakness in the capital structure, aiming to pursue a "loan-to-own" strategy that will transform a distressed-debt investment into ownership of Boston's largest office building. In this case, students examine the building's capital structure, project its net operating income and analyze abstracts of participation and intercreditor agreements to recommend strategies for executing the plan.
Each author name for a Columbia Business School faculty member is linked to a faculty research page, which lists additional publications by that faculty member.
Each topic is linked to an index of publications on that topic.