Report: Investment group purchased Chrysler HQ loan for $60 million
By Andrew, 23 Sep, 2010. 0 Comments
2010 Chrysler 300C SRT8
Sources say that a group of national and Metro Detroit investors expects to cash in on a loan deal involving the Chrysler LLC headquarters building in Auburn Hills, Mich. It is believed that this discreetly brokered deal involves a $225 million loan (the collateral of which is the 4.4 million-square-foot building) that was bought for $60 million. Local property records show that the loan buy was led by OZ Management LP, a New York-based subsidiary of investment management firm Och-Ziff Capital Management Group.
Documents show that the loan is valued at $225 million and that it was held by Citigroup Global Markets Realty Corp. until March, when it was moved to CHQ LLC, an entity incorporated in Delaware. Joel Frank, who is also CFO of Och-Ziff, had signed the articles of incorporation for CHQ. When asked about this report, OZ Management and Och-Ziff’s public relations firm Abernathy MacGregor Group said that there won’t be any comments to be made on any investments they may or may not be involved with.
Sources say that the deal was structured with 20% of the funds stemming from local investors. David Friedman, CEO of Friedman Real Estate Group, leads the local group. Amy Schiffman, Friedman director of marketing and administration, also declined to make a comment on this deal. Repayment of the $60 million investment is expected to be made via Chrysler's mortgage payments over two years. The remaining payments would be considered profit. Notably, the building will still be owned by Chrysler. [via autonews - sub. required]
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