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Zell and EQC Board at Crossroads After Monmouth Deal Collapses
The termination of a merger agreement with Monmouth Real Estate Investment Tuesday leaves Sam Zell and the board of Equity Commonwealth (EQC) at a crossroads, Crain’s Chicago Business reported. With its portfolio down to just four office properties after dozens of selloffs that left it with $3 billion in cash, liquidation now appears to be a more likely scenario.
Crain’s cited a report from Green Street that said Chicago-based EQC is likely to face “a more impatient shareholder base” now that the Monmouth deal is off the table. Green Street isn’t confident that EQC will be able to find another big portfolio or real estate company to buy at a reasonable price in the current market, according to Crain’s.
“With a lack of distressed opportunities in commercial real estate, a likely outcome of today’s news should be higher odds of a liquidation,” the Green Street report says.
- ◦Sale/Acquisition
