X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

AUSTIN, TX-Thomas Properties Group has restructured and recapitalized financing on its 3.5-million-square-foot, 10-asset commercial office portfolio. The agreement meant the Los Angeles company and its partners, including Lehman Brothers and California State Teachers’ Retirement System, were able to restructure a $292.5-million credit facility.

Thomas Properties’ executive vice president John R. Sischo says the agreement followed a suit filed against New York City-based Lehman Brothers when the latter failed to fund a $100 million commitment on the class A portfolio. Sischo tells GlobeSt.com that the logical solution was to restructure the facility so that other partners’ money would be senior to that of Lehman’s.

While Lehman reduces its exposure through the arrangement to $60 million and 50% ownership, Thomas Properties has money to deleverage the portfolio. Thomas Properties, indirectly through its CalSTRS joint venture, holds a 6.25% interest. The Lehman Brothers Bankruptcy Court judge approved the Austin debt restructure on March 25, 2009, according to a press release from Thomas Properties announcing the restructuring.

“Lehman continues to be a partner and still has a funding obligation with this loan for $60 million,” Sischo adds. “But we structured this to be a transaction that could support the portfolio on a long-term basis.”

He goes on to say that the portfolio is approximately 90% occupied, and Thomas Properties is holding it long term. The properties in the portfolio consist of 300 West South Sixth Street, Frost Bank Tower, Great Hills Plaza, One American Center, One Congress Plaza, Park 22, Research Park I & II, San Jacinto Center, Stonebridge Plaza II and Westech 360.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.