CenterPoint chief investment officer Paul Ahern says the REIT is negotiating in writing with three potential purchasers, with two more waiting in the wings. "I think we'll be out of it by the end of the year," Ahern says. "We currently have five different users interested in the building. The users come from a variety of industries that are looking for a state-of-the-art corporate headquarters."
Although it will likely dispose of its problem property at less than $90 per sf, CenterPoint is being helped by the building's near north suburban location less than two miles from the Edens Expressway, Ahern admits. "It's amazing the companies that are near that location," he says, noting the population in the five square miles surrounding the site surpasses that of the entire state of Indiana.
HALO declared bankruptcy last year and vacated the property in November. CenterPoint decided in December to sell the property, but had been marketing it since October when HALO's financial woes had already worsened.
Meanwhile, CenterPoint has a $30-million claim against HALO pending in bankruptcy court, REIT officials note.
After taking the one-time charge, CenterPoint reported funds from operations of $2.01 per share in 2001, down 40.2% from the previous year. For the fourth quarter, CenterPoint posted a loss of $0.76 per share, down 185% from the same period in 2000.
"We had a good quarter and a good year despite the recession with one huge exception," says chief executive officer John S. Gates Jr. "Other than the HALO debacle, 2001 went very much as we expected."
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