Trizec Properties' $70-million second mortgage, which it has since written down to about $22 million, allows it to assume a first mortgage of nearly $780 million held by Metropolitan Life. The building was most recently appraised at $826 million, but the REIT remains intent in taking over the property from a trust, which has a Roebuck & Co. subsidiary as the beneficiary.
However, Trizec Properties issued a release Friday echoing comments made earlier this month by president and CEO Timothy H. Callahan in GlobeSt.com's UpClose column. "We're anticipating becoming the owner this year--in the very short term," Callahan told GlobeSt.com two weeks ago. "It's subject to some documentation that's taking place now."
"The company has been advised that the necessary documentation has yet to be completed in order for the transfer to occur," according to a company statement Friday. "Currently, the delay has no material financial impact on Trizec, since all of the property's net cash flow is paid to the Metropolitan Life Insurance Co. as holder of the first mortgage."
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