According to a report in the Daily Deal, Frontline secured a $183-million startup loan from Reckson Operating Partnership LP, an affiliate of locally based REIT Reckson Associates. HQ Global's turnkey office business then became the centerpiece in a series of complementary businesses staked by Frontline.
The unconventional strategy seemed just crazy enough to work as the dot-com craze spun out of control. But once the fever broke and "online" frequently became "on unemployment," HQ Global felt the pinch just as hard as its imploding tenant base.
Unlike traditional VC firms that take the southern route, Frontline couldn't just fold its hand and leave the table. The company reportedly went into bankruptcy owing $234 million, leaving it with no means of paying off Reckson. Though Frontline is hoping to reorganize, industry observers are skeptical.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
