StreetMac, a Northbrook, Ill.-based commercial real estate financing firm, has formed an alliance with Chicago-based Urban Retail Properties LLC to advise Urban on opportunities for acquiring and managing distressed retail mall properties nationwide.
The alliance teams Urban, which has developed more than 75 domestic and international shopping destinations, with StreetMac, whose senior executives have originated more than $4 billion in commercial real estate financing transactions.
Drawing upon its relationships with capital market sources and special servicer organizations nationwide, StreetMac will identify distressed retail mall ownership and management opportunities for Urban and advise the firm in subsequent acquisition transactions with select capital market participants.
StreetMac and Urban have devised a proprietary formula that will allow Urban to acquire properties using a model that maximizes repayments to lenders and commercial mortgage-backed securities investors, the companies say.
"Our partnership with Urban presents a powerful and unique proposition for mall owners and investors where they can divest themselves of property holdings under distress because of weak retail market conditions," says David Jackson, StreetMac's president and CEO. "Our model allows current property owners to avoid potential bankruptcy or property foreclosure due to an inability to repay or refinance maturing loans or debt, reduce their leverage, and improve their investment flexibility and liquidity."
StreetMac will also provide Urban with due diligence advisory services on applicable acquisitions.
SOURCES: StreetMac, Urban Retail Properties