Trophy CBD Class AA Office JV Investment Opportunity
August 11, 2010
Dear Potential Client,
I am writing to offer you an excellent opportunity to participate in the acquisition of this Class AA, fully occupied office tower in Chicago.
This is a fabulous property which is effectively 100% occupied with credit quality tenants. More importantly, at least half of the building has rents which are 50% below the current rental value. In addition, we are buying the property for a great price of under $200 psf (This compares very favorably to several comparable recent transactions which have traded from $300-$500 psf).
Furthermore, we have also been able to obtain a long term, fixed rate financing at a 4.5% interest rate (which is about a 6.5% loan constant with a 25 year amortization). This is a fabulous financing which speaks to the credit quality nature of the building.
The proposed investment will produce a 8% current cash on cash return and a projected 30% IRR upon the resetting of a major lease in 10 years when its term matures.
If you reply “ok” to the following confidentiality agreement, I will send you a detailed letter and an investment summary which will provide you with all of the information.
I look forward to discussing this excellent investment opportunity with you soon.
Thanks,
If you would like to learn more about this opportunity please reply “OK” to this email acknowledging and agreeing to the foregoing confidentiality provisions:
You hereby agree to keep any and all information delivered by Carlton regarding the acquisition of an occupied Class AA office building located in the Midwest (the “Asset”) strictly confidential and shall not disclose any such information to any third party without Carlton’s prior written consent, except to your officers, directors, affiliates, partners, members, employees, financial advisors, legal counsel and accountants on a need to know basis. Notwithstanding the foregoing, such information does not include information that (a) is or becomes publicly available (other than as a result of a disclosure by you in violation of this agreement), (b) is already known to you or becomes available to you on a non-confidential basis from a person who is not known by you to be bound by a confidentiality agreement or (c) was or is independently developed by you without use of the information furnished by us. Furthermore, except in the ordinary course of your business unrelated to the Asset, you shall not, without the prior written consent of Carlton, communicate with the seller of the Asset, any lender, tenant, borrower, guarantor, contractor and/or obligor connected with, related to, and whose name is obtained from the provided information with respect to the Asset. The above provisions shall terminate on the earlier to occur of one year from the date hereof or the execution of a definitive agreement with respect to the Asset.
Please feel free to contact me if you are interested in this opportunity.
Howard L. Michaels
Chairman
Carlton Advisory Services, Inc.
560 Lexington Avenue – 10th Floor
New York, NY 10022
(212) 545-1000 office
(212) 867-1305 fax
Email: howardmichaels@carltongroup.local
Website: www.carltongroup.local
Carlton Exchange: www.carltonexchange.com
