Arkhouse / Sapir Bid for CXP
Can someone explain how a deal like this pencils and what the investor group's thesis is?
For something like this, how would it be financed? How much equity (usually) are the sponsors putting up?
Thanks.
Why anyone is trusting the Sapirs with a single cent at this time is beyond my comprehension.
I know that isn't answering your question, but they are another example of the extremely common and even more frustrating phenomenon of complete dunces and failures getting second, third, and fourth chances for absolutely no reason.
Care to elaborate ? , I think Sapir did a few high profile deals in the late 1990's but shifted his portfolio to Miami now . Thanks in advance
Don't have a ton to offer on this, but saw the more detailed offer letter here. I don't follow public REIT activity very closely, but it's for most of its history has been trading at a double-digit discount to NAV, even after they shifted their focus away from suburban to primary markets a few years ago. My guess is that the Sapir/Arkhouse purchase is a basis play but I'm sure there's more to it than that. Hopefully someone more knowledgeable can chime in.
Anecdotally, used to work with the CXP guys on a couple of NYC deals and their prior suburban portfolio was a hodge-podge of primarily single/anchor tenant office assets. Portfolio was also fragmented geographically and lacked a significant presence in any particular market(s). They've been focusing almost exclusively on NYC/SF/DC recently and have had some decent projects either completed or in the pipeline (799 Broadway, 149 Madison, and 315 Park Ave South, notably), as well as a ~$2B Allianz JV, so may be some tailwinds going forward.
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