case study

Loeb acquired a 50 percent interest in this property from Aetna in 2002. The property consists of an office tower above three levels of retail, which are the portion within the office tower envelope of the much-larger Shops at Canal Place luxury mall, the balance of which has been owned by unrelated third parties. By 2015, through effective management, Loeb had been able to increase its original acquisition financing by over 50 percent and distribute over $10 million in refinancing proceeds. 

After a successful repositioning effort that brought retailers like Tiffany to the Shops, Loeb and the owners of the balance of the mall jointly marketed their respective retail interests. The ability to combine them resulted in a remarkably low cap rate. In the case of the Loeb portion, this transaction required the creation of a retail condominium that could be sold, the defeasance of a CMBS loan, and the simultaneous placement of a new CMBS loan on the remaining office condominium, to close in conjunction with the financing and sale of the balance. Loeb was able to manage this complex transaction to closing in 2016 and distribute sale and financing proceeds, while still retaining an equity interest in the office-only portion of the building worth well in excess of its original equity investment in the combined property.

Loeb’s active management over the following decade paid off in tenant retention, including long-term renewals by the building’s two largest office tenants, which together occupy over 20 percent of the property, as well as in the relocation to the property of a major national law firm. Loeb sold the office unit in March 2026 in connection with the CMBS maturity. The combination of this sale with the previous refinancing and retail sale distributions produced a nearly 5X multiple to Loeb's investors over the life of the transaction.