Kemper Life Insurance

Transaction Overview
Property Type: Portfolio of industrial, office and retail
Transaction: Property acquisition / disposition

Transaction Background
When Zurich Insurance company announced its acquisition of Kemper Life Insurance Company, the decision was made to sell all of Kemper's commercial real estate holdings. CBA had financed each of these properties in its 1993 CBA-C1 securitization, retained the non-investment grade securities, and was monitoring the performance of the securitization in its entirety. As a result, CBA was positioned to move quickly on this acquisition.

Transaction Summary
CBA formed a joint venture with Divco Western Commercial, LLC and a major hedge fund to purchase the properties. The real estate portfolio consists of 1.5 million square feet of industrial space (59%), 590,000 square feet of office space (23%) and 500,000 square feet of retail (18%), located in five states. The properties were asset-managed by an affiliate of Divco, CBA's joint venture partner and profitably liquidated in a series of private transactions.