Case | HBS Case Collection | December 1987 (Revised May 1991)

One Leather Street

by William J. Poorvu and Jeffrey A. Libert

Abstract

Presents a problem involving rehabilitating a small office building in Boston. Describes an investment decision which is knowingly underfunded. As construction proceeds, the developer realizes that it is not up to building code and faces difficult business and ethical decisions regarding restructuring the deal, finding other sources of capital, replacing the contractors, and dealing with a difficult building inspector. Also points to the necessity of doing accurate financial planning.

Keywords: Financial Management; Ethics; Investment; Decisions; Decision Choices and Conditions; Property; Real Estate Industry; Construction Industry; Boston;

Citation:

Poorvu, William J., and Jeffrey A. Libert. "One Leather Street." Harvard Business School Case 388-084, December 1987. (Revised May 1991.)