Tishman Deleverages Boston Tower

BOSTON-Tishman Speyer Properties said Monday that the 1.1-million-square-foot One Federal St. office property in downtown Boston, which it co-owns in a partnership, has been deleveraged, with a portion of its secondary debt being retired at a discount. A spokesman for Tishman Speyer tells GlobeSt.com the amount of debt and the discount were not disclosed.

Published reports earlier this year said that the debt was a $49-million senior mezzanine loan which was being sold by TIAA-CREF. The largest loan on the property is a $262-million interest-only balloon loan through LB-UBS Commercial Mortgage Trust, 2006-C4. Tishman Speyer and its partners, Lehman Brothers and Henley US Holdings One LLC, an affiliate of Abu Dhabi Investment Authority, had bought the 38-story property from German pension fund Jamestown for a reported $514 million in 2006.

In a release, Tishman Speyer says that “with the investment of new equity there will be sufficient capital to fund new leases and otherwise execute the owners’ asset management strategy” on One Federal. The New York-based owner-operator has recapitalized several office properties this year. In just the past two months it has recapped its two Continental Grand Plaza office buildings in El Segundo, CA as well as the Dublin Corporate Center in Dublin, CA.

Earlier this year, Tishman Speyer restructured $175 million of debt on Second & Seneca, an office property in downtown Seattle. It also retired $600 million in debt on a Washington, DC portfolio and restructured a $1.4-billion loan on a portfolio in Chicago.

In other news, Tishman Speyer said that Merchant Warehouse is relocating its corporate headquarters office to One Federal.  The credit-card processor will lease the entire 42,787-square-foot second floor of the building in a five-year lease.