Spring 2008. Normandy Real Estate Partners and Five Mile Capital Partners, pursuing a “loan-to-own” strategy, see a possible opportunity in acquiring a tranche of mezzanine debt on the John Hancock Tower & Garage in Boston. (The mezzanine loan was collateralized by a six-building portfolio that included the John Hancock Tower and Garage, but for the purpose of this case, the focus is solely on the John Hancock Tower & Garage.) In this case students are asked to analyze the data and consider the following questions: What is the real estate currently worth and what is the value proposition for increasing value? Where in the capital stack should they invest? What are some of the key rights and obligations to consider in the loan documents?

Case id: 101710