Under the agreement, Broadway will maintain ownership interestin 100 Wilshire Blvd. in Los Angeles; 100 California St., OneSansome St. and 50 Beale St. in San Francisco; 116 Huntington St.in Boston; One Fair Oaks Plaza in Fairfax, VA; and Greensboro Parkin Tysons Corners, VA. According to a joint statement from the twocompanies, the capital contribution is critical to maintaining theproperties' class A status and to ensure "a stable and positiveexperience for current and future tenants. Funds will be used foranticipated leasing costs as well as capital upgrades of certainassets."

The agreement stipulates that Broadway cooperate with Lehman totransfer ownership of the remaining three properties "in an orderlymanner." They include Bay Colony Corporate Center in Waltham, MA;120 Howard St. in San Francisco; and 100 Wall St. here. Broadway'sother Boston-area holdings formerly included the John HancockTower, one of 10 assets Broadwaybought from Beacon in a $3.3-billion 2006 deal. The iconicBoston tower was sold to Normandy Real EstateHoldings at a discount earlier this year.

Scott Lawlor, Broadway's founder and CEO, says in a statementthat "This settlement takes care of all of Broadway's near-termdebt obligations in this portfolio for the next three years,insulating us from continuing credit market problems while weconcentrate on portfolio strategy and maintaining superior serviceto our tenants. We're very pleased that we were able to reach asolution with Lehman that met our respective objectives."

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.