WASHINGTON, DC-Tishman Speyer and its partners in a 28-assetportfolio of Washington, DC-area office buildings report that theyhave recapitalized its debt. The equity partners, led by TishmanSpeyer and including SITQ, have invested $700 million to retire$600 million of partnership debt and provide working capital.Tishman Speyer will continue to be the general partner, propertymanager and leasing agent for all of the properties.
The partnership acquired the portfolio--once the CarrAmericaportfolio-- in 2006. The office buildings, which include suchproperties as International Square, Terrell Place andthe Commercial National Bank Building, total 6.3 millionsquare feet and are approximately 88% leased.
The portfolio’s recapitalization marks the end of a months-longstruggle by Tishman to maintain its ownership stake. It was lastAugust when the Wall Street Journal reported thedefault of Tishman Speyer’s CarrAmerica portfolio. Thepaper said that the partnership violatedcovenants on $200 million in its revolving creditline.
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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.
