Resourcefulness

Nimble and adept when confronted by surprises

601w’s experience in so many areas of its field of endeavor sets it apart from others in its industry. The 601w team has over 100 years’ combined experience in real-estate ownership and management. 601w’s managing members have, collectively, more than 35 years of experience owning commercial real estate in New York City – principally in Manhattan – as well as in other states around the country. Although the core of its holdings are class A and trophy buildings, its managing members do not hesitate to pursue and uncover value in class B properties as well.

The managing members of 601w are equally comfortable in acquiring properties, debt on properties, leaseholds or fee postions. The experience and acumen of the managing members of 601w enable them to quickly assess the value of an asset, introduce the appropriate professionals to perform their due diligence, negotiate the essential terms of a transaction, and quickly & confidently take the important step ​what to do when things go wrong.

Case Study

550 West Jackson ave, Chicago

what to do when things go wrong.

The 601w Companies Resourcefulness Case Study: 550 West Jackson Avenue

Within ten days of closing on 550 West Jackson Avenue(which was 90% occupied at the time), a diversified-financial-services tenant with market cap of several billion dollars, which had occupied 40% of the property and had been paying half of the revenues of the property, filed for bankruptcy protection due to a massive fraud perpetrated by its CEO and CFO alone. Confronted by the daunting prospect of extraordinary operating losses of $5 million per annum, which were based upon a then half-empty building, as well as the almost certain default on its mortgage, the principals had to think and act quickly. The principals immediately embarked on the vital tasks of restructuring and lowering the existing debt, finding

a preferred-equity partner willing to accrue its return, and obtaining fresh equity funds to pay for the new leasing costs that were needed to lease up the recently-vacated half of the building. By accomplishing each of these goals, within two years the principals had achieved an occupancy level in excess of 98%, refinanced the property with a 10-year interest-only loan, and fully paid off its preferred-equity partner and commenced investor distributions soon thereafter.