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GlobeSt.com UPDATE: CenterPoint, HALO Talks Continue

NILES, IL-A lease deal here provides a case study on the roller-coaster ride taken by dot-com players jumping in from other industries, as well as the property owners who leased space to them.

By Mark Ruda | Updated on July 25, 2001

NILES, IL-The day HALO Industries and CenterPoint Properties Trust amended their 10.5-year lease for an expansion to 450,000 sf of office and warehouse space at 5980 W. Touhy Ave., the stock price of the advertising specialties company was $31.93, recalls Mike Mullen, the REIT’s chief operating officer. While that was about five times more than its IPO debut a few years earlier, HALO stock most recently traded at $0.19; 4 cents higher than its 52-week low, but 97% off its 52-week high.

As a result of the company’s restructuring following HALO’s $300-million Starbelly.com Internet debacle, new management is negotiating with CenterPoint on an adjustment of the lease, which has been amended five times, primarily to meet real and anticipated needs of the tenant. While the current renegotiation will not affect the Chicago market’s largest industrial REIT’s 2001 earnings, it may in 2002, company officials concede.

“There’s a thousand ways this deal could end up,” says CenterPoint president and CEO John Gates.

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