In addition to a representative from Lend Lease, the auction drew Chicago investor David Azrin, whose interest in the Harmswood Office Center was heightened by the lender's bid of $8.9 million, nearly $3 million less than the original amount of the December 1997 debt. However, GMAC would have become a bidder if necessary, says attorney John R. Weiss of Katten Muchin Zavis Rosenman, who represents GMAC.
Weiss tells GlobeSt.com GMAC used a short sale to get title to the property quickly, and may well recoup more than its bid, which was less than $100 per sf. If GMAC recoups the full $11.66 million owed by Harms Road Associates, LP, they would be selling the building at $130 per sf.
Nonetheless, the property is attractive to Azrin, who tells GlobeSt.com, "It's a very good location, it's in a steady market, there's predictable income. It's a good investment."
While welcoming the interest at Thursday's sale, Weiss tells GlobeSt.com there may be other prospects.
Published asking rental rates at the building, which is managed by CB Richard Ellis, are $16 per sf and $17 per sf on a net basis.
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