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WASHINGTON, DC-The District and surrounding areas have not seen much in the way of commercial real estate defaults. That, though, is starting to change with the liquidation of Opus East’s portfolio, the return of the Watergate hotel to its lender–and now, the reported default of Tishman Speyer’s CarrAmerica portfolio, which it holds in a partnership.

Tishman Speyer acquired this 28-asset portfolio in 2006 for $2.6 billion. The Wall Street Journal has reported that partnership has violated covenants on $200 million in its revolving credit line because the properties’ cash flow barely covers debt service.

Tishman Speyer’s woes, if nothing else, highlight that the District can be just as impacted to the national economic headwinds as other, more troubled markets. At the same time, though, the relative rarity of such defaults also point to the continuing resilience in the market, Greg Leisch, principal with Delta Associates, tells GlobeSt.com.

“Washington is still showing up as one of the least distressed cities,” he says, citing data Delta gathered. Washington’s level of distressed debt is the second lowest on a per capita basis out of ten major cities studied, at $105 per capita, he says. The highest is South Florida at $900 per capita.

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