Investment Examples

Forest View

Chicago, IL

In 2014, RSF Fund VI formed a joint venture with Venture One, a local operating partner, to acquire the defaulted mortgage loan on a 394,000 square foot two building, industrial complex in Chicago, IL. The loan was purchased for at a 45% discount to the outstanding principal balance and a 71% discount to replacement cost. At purchase, the buildings were 53% leased.

RSF immediately foreclosed on the property, replaced the buildings’ roofs, and renewed a lease with an existing tenant for one building (53% of the project) for five years at a rent 20% above the original pro forma. Venture One also negotiated a tax abatement with the city, generating additional profit on the investment. Fund VI sold the project to a company that occupied the second building and structured the transaction to achieve long term capital gains treatment.