A Terminal Transaction Terminal Tower A Terminal Transaction

A Terminal Transaction

Terminal Tower A Terminal Transaction – Exterior Renovation

A $10 B Real Estate Company with a National Footprint A Terminal Transaction – Exterior Renovation

The Union Terminal circa 1930 A Terminal Transaction – Exterior Renovation

34 th Floor Cornice A Terminal Transaction – Exterior Renovation

Floors 34 - 52 A Terminal Transaction – Exterior Renovation

The Union Terminal Rehab A Terminal Transaction – Exterior Renovation

A Terminal Transaction – Exterior Renovation

Original Ramp Configuration • Pic of original ramp A Terminal Transaction – Exterior Renovation

Without Original Ramps If we had to keep the ramps A Terminal Transaction – Exterior Renovation

Reconfigured Ramp • Pic of redone ramps with sloping ceilings A Terminal Transaction – Exterior Renovation

• Pics of Interior 7 Interior shots of Retail Center A Terminal Transaction – Exterior Renovation

The Tower Rehab - 2005 A Terminal Transaction – Exterior Renovation

Something’s Missing A Terminal Transaction – Exterior Renovation

A Terminal Transaction – Exterior Renovation

OUCH! A Terminal Transaction – Exterior Renovation

Before & After with Fiberglass Replacement A Terminal Transaction – Exterior Renovation

15 th Floor Cornice – “Before” A Terminal Transaction – Exterior Renovation

Cornice Elements Removed, New Steel A Terminal Transaction – Exterior Renovation

Finished Product. Cornice Elements made of Fiberglass A Terminal Transaction – Exterior Renovation

Challenges • DEFINING THE BUILDING FOR SUBSTANTIAL REHABILITATION TEST PURPOSES • WORKING AROUND SECURITIZED DEBT ALREADY IN PLACE A Terminal Transaction – Exterior Renovation

Defining the Building Existing complex components owned by different Forest City entities. In 3 dimensions, components jut in and out of the space directly under the office tower. The property master leased to the historic Lessee is only the office tower. Didn’t include the mall space in “building”. A Terminal Transaction – Exterior Renovation

Defining the Building (cont’d) Definition of the building for Rehab Test purposes cuts off the office tower at ground level. The “building” for purposes of the test is comprised of all or part of various components. Easements were put in place to permit access through space owned by others to the office tower. A Terminal Transaction – Exterior Renovation

The Debt Securitized debt placed with Bear Stearns. Virtually no wiggle room as to its terms. any way compromised. Loan “security” cannot be in It took months of back and forth with the servicer to craft a deal. One example: Loan terms require that rent checks from tenants go into a lock-box controlled by the servicer. Servicer would then pull out debt service and remit remaining funds to building management company to pay bills. Lessee must collect the rents, make lease payments, and operate as a legitimate separate entity. Solution was to create additional lock-box at Lessee level. A Terminal Transaction – Exterior Renovation

The Players Developer: Forest City Enterprises, Inc Investor: Morgan Stanley Syndicator: Consortium Structured Investments Developer Counsel: Squire Sanders and Dempsey Lead by Steve Mount Investor Counsel: Nixon Peabody Lead by David Schon and Dan Kolodner Financial Projections: Reznick Group, Inc Lead by Jo Ann Clipp A Terminal Transaction – Exterior Renovation