Search
 

Moving 'Great Wall' Not Without Hurdles

MONEE, IL-World Kitchen, Inc.'s 700,200-sf Midwestern distribution center changes hands in a deal that involves the trick of converting a single-borrower loan into a mortgage for five tenant-in-common investors.

By Mark Ruda | Updated on January 25, 2005

MONEE, IL-Griffin Capital president Kevin Shields concedes converting a single-borrower loan into a multi-borrower loan has been done before. He just accomplished the rare feat himself by placing five tenant-in-common investors into a $24-million deal for World Kitchen, Inc.’s 700,200-sf Midwestern distribution center at 5800 Industrial Dr.

“The most challenging aspect of the transaction was converting the existing securitized single-borrower loan into a multi-borrower, TIC-format transaction,” says Shields, whose Los Angeles-based investment company also has an office in Chicago. “Given the quality of the investment opportunity in the World Kitchen transaction, the challenges were well worth the effort.”

However, the relatively new financing concept is a daunting, time-consuming effort, Shields tells GlobeSt.com. Financing a tenant-in-common deal is challenging enough, he says. “Taking the existing loan documents, with all the collateral issues, is inordinately more difficult.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 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.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.