Mirvac Portfolio

Direct negotiations with a lender and an established property group lead to purchase of a note at advantageous terms and then the fee interest of a chicago land portfolio.

In February of 2011, we purchased a single note secured by first mortgages on 30 industrial properties located throughout Greater Chicago, Milwaukee and Grand Rapids, MI. The portfolio, consisting of 4.1 million SF, was owned by a foreign investment group and was 68% occupied. The holder of the note originated the loan in June 2006. Subsequent to the note purchase, we acquired the fee interest from the owner.

We monitored this opportunity throughout 2009 and 2010 through multiple meetings with the holder of the note. By October 2010, the holder had decided they would consider a sale of the note and advised us to submit an offer. After several rounds of negotiations, we closed on the note purchase. The acquisition of the note represented an excellent opportunity to earn an appealing risk-adjusted return by either getting paid off at maturity, or potentially controlling a large portfolio of functional industrial assets. Subsequent to the note purchase, we acquired the fee interest from the owner.