An asset suffering from traits common to the Great Recession proved to be a hidden opportunity
When Unico evaluated the purchase of Belleview Tower, a 200,323-square-foot Class-A office building located in the Denver Tech Center, the asset was suffering from traits common to the Great Recession: loan default, corporate bankruptcy, no capital to sustain tenancy, deferred maintenance, failing operations, and rapidly decreasing occupancy. The complexities surrounding a note purchase were heightened by the lender’s requirement of an extremely quick close. This quick-close requirement eliminated the potential for Unico to obtain first mortgage financing before it acquired the building. Unico also had to structure the transaction with a borrower in bankruptcy and a bank facing imminent insolvency.
