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[{"id": "hs7kgbi", "text": "We\u2019re missing a lot of information on the property.", "replies": [{"id": "hs7m0w9", "text": "https://www.reddit.com/r/Crowdstreet/comments/s0ofz2/200_w_jackson_chicago_office/?utm_source=share&amp;utm_medium=ios_app&amp;utm_name=iossmf", "replies": [{"id": "hs7mrtc", "text": "Where did you find the loan terms and length?  We\u2019re those listed with the offering or did you guess?", "replies": [{"id": "hs7n6to", "text": "I redid the calculation. They would need $1M monthly payments to pay down the debt. Paying the debt down fully is likely Not the goal of the sponsor however.", "replies": [{"id": "hs7nay0", "text": "No, that would never be an objective for a group like this.  They\u2019re investing for cashflow, not equity.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "hs9psjc", "text": "Brother I can tell you unequivocally that investing in an office building in Chicago won\u2019t go the way you want it to go, nor is buying a deal right now a smart idea when cook county hasn\u2019t responded to any of the filed 2021 tax appeals yet. Investment sales market in Chi is on ice right now until guidance comes out on where the appeals will shake, don\u2019t let anyone tell you differently. Chicago is also a terrible tenant friendly market, and there\u2019s like a billion percent vacancy rate in the loop. You get absolutely smoked on basis creep in loop and the sales market is soft at the end of the day. \n\nWould avoid this thing like the plague (or maybe these days like an active COVID patient or something). There is a reason they\u2019re trying to syndicate retail money for this and they don\u2019t have you\u2019re best interests in mind. \n\nAs an aside I\u2019ve also heard not great things about CS, they ask sponsors to jam assumptions so that the returns that they show in the offerings are \u201cwhat retail investors want to see\u201d not what the operator actually thinks they can achieve.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hs7kgel", "text": "Uh think your math is wrong boss, 300mm on a fixed rate io basis is like a 6bn loan, I can\u2019t think of any issuances that large not in a credit facility for a portfolio\u2026", "replies": [{"id": "hs7lptk", "text": "$103MM loan", "replies": [], "depth": 2}], "depth": 1}, {"id": "hs7m3r8", "text": "You math is wrong. Even if you value the property at a 4% cap rate which would equates to a value of $250M even with a LTV of 100%, I/O would be 11.625M per year which is less than $300M of interest for the 10 year term.", "replies": [], "depth": 1}, {"id": "hs7mfki", "text": "$300,000,000 interest payments?  Sheesh!", "replies": [], "depth": 1}]