Case Study

Loeb acquired a 50 percent interest in this property from a major insurance company in 2002. The property consists of an office tower above three levels of retail, which are the portion within the office tower envelope of the much-larger Shops at Canal Place luxury mall, the balance of which has been owned by unrelated third parties. By 2015, through effective management, Loeb had been able to increase its original acquisition financing by over 50 percent and distribute over $10 million in refinancing proceeds.

Most recently, after a successful repositioning effort that brought retailers like Tiffany to the Shops, Loeb and the owners of the balance of the mall jointly marketed their respective retail interests. The ability to combine them resulted in a notably low cap rate. In the case of the Loeb portion, this transaction required the creation of a retail condominium that could be sold, defeasance of a CMBS loan, and the simultaneous placement of a new CMBS loan on the remaining office condominium. Loeb was able to manage this complex transaction to closing in 2016 and distribute sale and financing proceeds worth twice its original equity investment in the combined property while retaining an equity interest in the office-only portion of the building also in excess of that investment.