Undisclosed Chinese Investor Finds Murray Hill Partnership, but Many Others Abroad Looking Too
Commercial Observer reports: Real Capital Analytics’ Managing Director Dan Fasulo told the Commercial Observer, “The whole distressed cycle is not playing out as many had originally thought,” in reference to Murray Hill Properties’ recent tie-up with a Chinese investor that helped the firm save its prized 1180 Sixth Avenue office tower from near-certain foreclosure.
The property, which Murray Hill bought at the peak of the market in 2006, was almost foreclosed on by the Shorenstein Group that bought the B-note mezzanine loan. Murray Hill was able to engage an undisclosed Chinese investor willing to sink $265 million in equity and debt into the property, allowing the firm to maintain its operating partner status of the building. According to the Commercial Observer, Murray Hill and the Chinese partner are already looking for more opportunities in Manhattan.
The situation of a mainstay US real estate firm partnering with an undisclosed investor from the Middle East or Asia is becoming more common, as those foreign entities wish to get into US real estate and/or away from instability in their home markets. The cheapest route for most to take is to partner with an established local US firm and scoop up distressed properties in solid markets. Though, as Mr Fasulo pointed out, this is easier said than done this cycle. He added that, “There are not distressed assets for sale through Cushman & Wakefield. You have to be a little more creative and team up with distressed owners in some sort of recapitalization; try to pursue the loan-to-own."
View the full article on Commercial Observer: Undisclosed Chinese Investor Finds Murray Hill Partnership, but Many Others Abroad Looking Too
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