A%20Terminal%20Transaction

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A Terminal Transaction
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Terminal Tower
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A 10B Real Estate Company with a National
Footprint
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The Union Terminal circa 1930
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34th Floor Cornice
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Floors 34 - 52
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The Union Terminal Rehab
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(No Transcript)
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Original Ramp Configuration

• Pic of original ramp

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Without Original Ramps
If we had to keep the ramps
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Reconfigured Ramp

• Pic of redone ramps with sloping ceilings

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• Pics of Interior 7

Interior shots of Retail Center
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The Tower Rehab - 2005
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Somethings Missing
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(No Transcript)
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OUCH!
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Before After with Fiberglass Replacement
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15th Floor Cornice Before
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Cornice Elements Removed, New Steel
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Finished Product. Cornice Elements made of
Fiberglass
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Challenges

• DEFINING THE BUILDING FOR SUBSTANTIAL
  REHABILITATION TEST PURPOSES
• WORKING AROUND SECURITIZED DEBT ALREADY IN PLACE

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Defining the Building

• Existing complex components owned by different
  Forest City entities.
• In 3 dimensions, components jut in and out of the
  space directly under the office tower.
• The property master leased to the historic Lessee
  is only the office tower.
• Didnt include the mall space in building.

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Defining the Building (contd)
Definition of the building for Rehab Test
purposes cuts off the office tower at ground
level. The building for purposes of the test
is comprised of all or part of various
components. Easements were put in place to
permit access through space owned by others to
the office tower.
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The Debt

• Securitized debt placed with Bear Stearns.
• Virtually no wiggle room as to its terms. Loan
  security cannot be in any way compromised.
• It took months of back and forth with the
  servicer to craft a deal.
• One example
• Loan terms require that rent checks from tenants
  go into a lock-box controlled by the servicer.
  Servicer would then pull out debt service and
  remit remaining funds to building management
  company to pay bills.
• Lessee must collect the rents, make lease
  payments, and operate as a legitimate separate
  entity.
• Solution was to create additional lock-box at
  Lessee level.

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The Players

• Developer Forest City
  Enterprises, Inc
• Investor Morgan Stanley
• Syndicator Consortium
  Structured Investments
• Developer Counsel Squire Sanders and
  Dempsey
• Lead by Steve Mount
• Investor Counsel Nixon Peabody
• Lead by David Schon and Dan Kolodner
• Financial Projections Reznick Group, Inc
• Lead by Jo Ann Clipp