UPDATE: Tishman Speyer In Talks With NY Fed To Rework Loans
07 Diciembre 2009 - 6:41PM
Noticias Dow Jones
Real-estate giant Tishman Speyer is trying to renegotiate some
$1.4 billion in loans backed by Chicago office towers with an
unusual creditor: the Federal Reserve Bank of New York.
The Fed inherited the debt when it assumed assets from Bear
Stearns in 2008 as part of that firm's distressed sale to J.P.
Morgan Chase & Co (JPM). Now, the regulator is squaring off
against Tishman Speyer as it seeks to renegotiate the loans that
are secured by a $1.7 billion portfolio of Chicago office
buildings, the company confirmed Monday.
ChicagoBusiness.com, a Crain's Web site, first reported the
negotiations on Saturday. Tishman purchased the five office
buildings, which included the Civic Opera Building, at the top of
the market in 2007, and they totaled 6.5 million square feet,
according to a press release at the time.
The Fed is playing hard ball in the talks; it has frozen a
reserve fund for the properties. "During the course of these
discussions, the lenders have delayed funding certain capital
expenditures that already had been approved and that were required
under the loan agreement," the company said in a statement. Tishman
noted that the deterioration in commercial property values prompted
the need for loan modifications.
Tishman added that it expected the negotiations "will be
concluded soon" and the financial status of its other invested
properties won't be affected.
Rick Matthews, a spokesman for Tishman, said the developer
wasn't in default, technical or otherwise, on any of the loans. The
ChicagoBusiness.com said in its article that a Tishman-led venture
is in default on a mezzanine loan that is part of the $1.4 million
loan package. "Tishman is current and there has been no default,"
he said.
However, a representative from the Federal Reserve said in a
statement there "is currently a question as to whether or not the
borrower has met the requirements for extending the term" of the
loan, which ended in September.
"Maiden Lane has indicated that it will not continue to fund
under the loan while the question of maturity of the loan is
outstanding," the representative said. Maiden Lane is a limited
liability corporation facility that the Fed formed to facilitate
the merger of Bear Stearns and J.P. Morgan.
This marks another setback for the Tishman Speyer empire, whose
holdings include Manhattan's Rockefeller Center and the Chrysler
Building. In recent months, Tishman has been struggling with a slew
of top-of-the-market acquisitions, including the sprawling New York
apartment complexes Peter Cooper Village and Stuyvesant Town, a
large office portfolio in the Washington area, and Archstone-Smith,
a high-end apartment real-estate investment trust.
-By A.D. Pruitt, Dow Jones Newswires; 212-416-2197;
angela.pruitt@dowjones.com
Trustreet (NYSE:TSY)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Trustreet (NYSE:TSY)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024