The joint venture term loan and revolver debt totals approximately $570 million. The 6.3 million-square-foot portfolio consists of 14 properties in the District, along with seven suburban properties. The Tishman Speyer venture acquired in 2006 from CarrAmerica for $2.6 billion.
Last week news broke that the 21-office portfolio was in violation of a loan covenant on its revolving credit line when the cash flow began to dwindle. Rick Matthews, spokesperson for Tishman Speyer, says that as part of any restructuring it will make a tender offer to buy back a portion of the term loan and revolver debt. "If the debt tender is successful, and certain other issues are resolved, the ownership group will make a substantial new equity capital investment in the portfolio." Matthews declined to comment further to GlobeSt.com, citing pending negotiations.
Tishman Speyer owns a number of properties in the DC area, some of which are not part of this portfolio, including International Square, Presidential Plaza and 1775 Pennsylvania Ave. After the news broke that Tishman Speyer was going into default, Standards & Poor's lowered its credit rating on the portfolio, following a similar ratings cut earlier this year.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
