CHICAGO-Tishman Speyer has reached an agreement with lenders, including the Federal Reserve Bank of New York, to restructure a $1.4 billion loan for five downtown office towers. The move was designed to allow Tishman to improve the properties, which include more than six million square feet in One North Franklin, 161 N Clark, 10 & 30 South Wacker, Civic Opera Building and 30 N LaSalle.
The agreement will enable ownership to fulfill all existing financial obligations and fund costs related to leasing and operation, Tishman said in a statement. The company will contribute $50 million to a $100 million pot for improvements and leasing. The loans are also extended until 2014.
Casey Wold, senior managing director for Tishman, said the firm is now safe to move forward quickly to meet current obligations and complete capital projects. “We are grateful for the patience and support that we have received during our restructuring efforts, and we look forward to many more years as a major property owner and operator in the city,” he said in the statement.
Tishman Speyer purchased the six-million-square-foot Chicago portfolio for $1.72 billion in summer 2007 from the Blackstone Group, which had acquired the properties in the takeover of the former Equity Office Properties Trust. The portfolio is about 20% vacant.
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