Thursday, April 19, 2007

Presdential Towers in Waterton's hands

This one was announced a while back, so it is no big surprise, but Waterton Associates, which has been buying up high rise apartments downtown, just closed on its $470 million acquisition of Presidential Towers from Pritzker Realty Group.

Waterton apparently won an auction-style sale with some 21 bidders. I used to work a little bit with Pete Vilim and David Schwartz a while back. This one surprised me a little, but, while ethics prevent me from getting into specifics, I can tell you that they are very good at taking calculated risks on deals. While I am not an expert on their business dealings, I don't think they have a reputation of overpaying, either, and as David said in a short blurb in today's Tribune, the purchase price is "significantly below replacement cost." Media reports also say they are going to start taking a look at extensive renovations to the 20+ year old buildings.

This is a trophy acquisition for Pete and David and their company, and I'm happy to read about it. I can't say the same for another large deal I read about yesterday that I will not write about under this theory.