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A Terminal Transaction

A Terminal Transaction. Terminal Tower. A $10B Real Estate Company with a National Footprint. The Union Terminal circa 1930. 34 th Floor Cornice. Floors 34 - 52. The Union Terminal Rehab. Original Ramp Configuration. Pic of original ramp. Without Original Ramps.

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A Terminal Transaction

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  1. A Terminal Transaction

  2. Terminal Tower

  3. A $10B Real Estate Company with a National Footprint

  4. The Union Terminal circa 1930

  5. 34th Floor Cornice

  6. Floors 34 - 52

  7. The Union Terminal Rehab

  8. Original Ramp Configuration • Pic of original ramp

  9. Without Original Ramps If we had to keep the ramps

  10. Reconfigured Ramp • Pic of redone ramps with sloping ceilings

  11. Pics of Interior 7 Interior shots of Retail Center

  12. The Tower Rehab - 2005

  13. Something’s Missing

  14. OUCH!

  15. Before & After with Fiberglass Replacement

  16. 15th Floor Cornice – “Before”

  17. Cornice Elements Removed, New Steel

  18. Finished Product. Cornice Elements made of Fiberglass

  19. Challenges • DEFINING THE BUILDING FOR SUBSTANTIAL REHABILITATION TEST PURPOSES • WORKING AROUND SECURITIZED DEBT ALREADY IN PLACE

  20. 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”.

  21. 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.

  22. The Debt Securitized debt placed with Bear Stearns. Virtually no wiggle room as to its terms. Loan “security” cannot be in any way compromised. 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.

  23. 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

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