Corus, RCG Longview Finance Intell's $102M Buy of Enron Building
Intell Management and Investment Co. completed a $102 million purchase of Enron Center South in downtown Houston with a $68 million mortgage from Corus Bank, a Chicago lender, and a $20 million mezzanine loan from RCG Longview of New York.
January 2, 2003, Commercial Real Estate Direct Staff Report
Intell Management and Investment Co., a New York investor led by developer Gary Barnett, has completed its $102 million purchase of Enron Center South, a 1.2 million-square-foot office building in downtown Houston that was meant to be the headquarters of the bankrupt energy company.
Intell had turned in the highest offer for the recently constructed 40-story office building on Oct. 1, at a bankruptcy auction held in New York. The property was marketed on behalf of Enron by Holliday Fenoglio Fowler LP.
Intell completed its purchase earlier this week. It funded its acquisition with a $68 million mortgage from Corus Bank, a Chicago lender, and a $20 million mezzanine loan from RCG Longview of New York. Intell's debt was arranged by Meridian Capital Group, a New York mortgage adviser.
Intell likely raised a substantial amount of equity, in addition to the $88 million of debt, given that it is buying a vacant building – and nearly 800,000 sf is completely unfinished. The added capital would give it the wherewithal to fund tenant improvements and pay leasing commissions.
Besides the 40-story office building, Intell acquired an adjacent 1,100-space parking garage and 62,500 sf of land that could be developed into additional space.
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