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• Case | HBS Case Collection | July 2004 (Revised July 2020)

  Hines Goes to Rio

  Arthur I Segel and Ricardo Reisen De Pinho

  The Torre Almirante office tower, Hines' newest project in Rio de Janeiro, was a 36-story, Class AA office tower with an adjoining 420-stall parking structure and a preserved 14-story historic facade. It was completely different from anything that had previously been built in the city. It was also the first time that a developer took the risk of publicly announcing to the Brazilian business community its intention and commitment to complete such a complex real estate project on schedule. It was an impressive and unprecedented enterprise, but at this stage, the project was enmeshed in some operational complications. Several project designs were not yet ready, and discussions among the different companies involved in the development had intensified in the past weeks. Robert A.M. Stern Architects, the New York-based design architect, was debating with Hines about issues ranging from the glass window specifications to the material for the gold leaf lobby ceiling. Pontual Arquitetura, the local production architect, was concerned about the fire protection system. In addition, Racional, the local general contractor, just pointed out a serious problem in the freight elevator shaft that could force Hines to modify substantial parts of the project and, consequently, trigger a new round of required approvals. Includes color exhibits.

  Keywords: Property; Design; Construction; Buildings and Facilities; Risk Management; Problems and Challenges; Real Estate Industry; Brazil; New York (city, NY);

  Citation:

  Segel, Arthur I., and Ricardo Reisen De Pinho. "Hines Goes to Rio." Harvard Business School Case 805-001, July 2004. (Revised July 2020.)  View Details

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• Case | HBS Case Collection | June 2009 (Revised May 2020)

  Busse Place

  Arthur I Segel, William J. Poorvu, Richard Kessler, Justin Seth Ginsburgh and Eric Fleiss

  Busse Corporate Center's largest tenant recently declared bankruptcy, leaving the building 38% occupied and significantly overleveraged. In a depressed suburban Chicago office market, Hannah Sanchez, the leasing agent, has to negotiate lease proposals with three prospective tenants to try to fill the vacant space. Meanwhile, the building's owner, Collins Properties, must decide with its equity partner whether to continue funding the building's losses while trying to lease the vacant space, restructure the debt, or default on the loan and turn the building over to its lenders. The decision is made more complicated by Collins' use of a Commercial Mortgage Backed Security (CMBS) Loan, which involves multiple parties, ambiguous relationships, and bifurcated responsibilities.

  Keywords: Buildings and Facilities; Restructuring; Borrowing and Debt; Financial Management; Mortgages; Investment; Leasing; Property; Real Estate Industry; Chicago;

  Citation:

  Segel, Arthur I., William J. Poorvu, Richard Kessler, Justin Seth Ginsburgh, and Eric Fleiss. "Busse Place." Harvard Business School Case 209-154, June 2009. (Revised May 2020.)  View Details

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• Supplement | HBS Case Collection | June 2014 (Revised May 2020)

  Busse Place (B): Hannah's Dilemma

  Arthur I. Segel and John H. Vogel, Jr.

  Marisa Sanchez, a new Associate at Douglas Private Equity Advisors, confronts a dilemma when she is asked by a Senior Vice President (SVP) to do due diligence on a deal he wants to bring before the investment committee which will include the SVP, Douglas' owner and founder and others. The meeting is timed just before annual bonus season. Marisa's due diligence findings indicate that her boss, the SVP, has significantly misrepresented the market information and that the pricing should be considerably less than he is advocating. He asks her to manipulate the numbers, "to make the numbers work." She has to decide, when asked at the committee meeting, what to say and how.

  Keywords: real estate; financial analysis; Property; Finance; Analysis; Ethics; Real Estate Industry; United States;

  Citation:

  Segel, Arthur I., and John H. Vogel, Jr. "Busse Place (B): Hannah's Dilemma." Harvard Business School Supplement 214-104, June 2014. (Revised May 2020.)  View Details

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