WASHINGTON, DC-Tishman Speyer and its partners in a 28-asset portfolio of Washington, DC-area office buildings report that they have recapitalized its debt. The equity partners, led by Tishman Speyer 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, property manager and leasing agent for all of the properties.

The partnership acquired the portfolio--once the CarrAmerica portfolio-- in 2006. The office buildings, which include such properties as International Square, Terrell Place and the
Commercial National Bank Building, total 6.3 million square feet and are approximately 88% leased.

The portfolio’s recapitalization marks the end of a months-long struggle by Tishman to maintain its ownership stake. It was last August when the Wall Street Journal reported the default
of Tishman Speyer’s CarrAmerica portfolio. The paper said that the partnership violated covenants on $200 million in its revolving credit line.

In February of this year, Brookfield Properties acquired the debt associated with the portfolio, reportedly in a loan-to-own structure to give the company significant leverage in the restructuring process. In April Brookfield Properties launched foreclosure proceedings on the portfolio. Tishman, however, pushed back, seeking a way to restructure the debt in order to maintain its ownership.