Select Case Studies
When it was founded in 1997, Impala principals had purchased a 66.6% interest in a vacant office building at 10 Hanover Square (in the Wall Street area), the former Headquarters of Kidder Peabody. The purchase price of $15 million was financed with $100,000 of equity and the balance was debt financed. The purchase price for the twenty-five year old 342,000 square foot building was less than $45 per square foot, with the replacement cost of close to $200 per square foot. The principals believed that despite the surplus of downtown office space, at the time of the deal, the building was a compelling value.
The building also had significant asbestos exposure and needed total remediation before it could be re occupied. During the remediation plans were prepared for conversion to a residential rental building.
After remediation the building was leased to Goldman Sachs for their data services unit. The principals sold their interest for a gain of $12.7 million within three years of their original investment.