Busse Place

Posted: 10 Sep 2009

See all articles by Arthur I. Segel

Arthur I. Segel

Harvard University - Entrepreneurial Management Unit

William J. Poorvu

Harvard University - Business School (HBS)

Richard Kessler

Benenson Capital Partners

Justin Seth Ginsburgh

Harvard Business School

Date Written: July 25, 2009

Abstract

Busse Corporate Center's largest tenant recently declared bankruptcy, leaving the building 38% occupied and significantly overleveraged. In a depressed suburban Chicago office market, Marisa Sanchez, the leasing agent, has to negotiate lease proposals with three prospective tenants to try to fill the vacant space. Meanwhile, the building's owner, Collins Properties, must decide with its equity partner whether to continue funding the building's losses while trying to lease the vacant space, restructure the debt, or default on the loan and turn the building over to its lenders. The decision is made more complicated by Collins' use of a Commercial Mortgage Backed Security (CMBS) Loan, which involves multiple parties, ambiguous relationships, and bifurcated responsibilities.

Suggested Citation

Segel, Arthur I. and Poorvu, William J. and Kessler, Richard and Ginsburgh, Justin Seth, Busse Place (July 25, 2009). HBS Case No. 209-154, Harvard Business School Entrepreneurial Management Unit, Harvard Business School Finance Unit, Available at SSRN: https://ssrn.com/abstract=1470256

Arthur I. Segel (Contact Author)

Harvard University - Entrepreneurial Management Unit ( email )

Cambridge, MA 02163
United States
617-495-6998 (Phone)

William J. Poorvu

Harvard University - Business School (HBS) ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

Richard Kessler

Benenson Capital Partners ( email )

708 Third Avenue
28th Floor
New York, NY 10017
United States

Justin Seth Ginsburgh

Harvard Business School ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

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