With few commercial building sales taking place, the foreclosure
auction of the $130 million mezzanine note at the former Macklowe
Properties office tower 1330 Avenue of the Americas in April was a
critical market indicator. Kevin O’Shea, who made the winning
bid for the note on behalf of the victor, is the managing partner at
international law firm Allen & Overy’s New York office. The firm
represents Canadian pension fund Otera Capital, the owner of the note.
O’Shea also arranged the purchase of debt on the John Hancock Tower which allowed Normandy Real Estate Partners and Five Mile Partners to buy the Boston office tower in a foreclosure auction in April. O’Shea spoke to The Real Deal about the auction and tensions breaking out among mezzanine note holders, which the industry refers to as tranche warfare. [more]