Tishman Restructures $1.4B Debt
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|Someone at Tishman Speyer must've been watching the right infomercial: It reached an agreement with its lenders to restructure $1.4B in debt secured by five Downtown Chicago office properties. Ultimately that's good news for CBD tenants, CBRE SVP Kyle Kamin tells us.|
|Here's why: The agreement calls for more than $100M to be available for leasing commissions and TI, plus Tishman will make a direct infusion of $50M in the properties, including One North Franklin, 161 N. Clark, 10 & 30 S. Wacker, 30 N. LaSalle and the Civic Opera Building, above. "In a nutshell, it means that the largest landlord in town has capital to offer tenants in an environment in which tenants generally do not have it in their budgets for improvements to their leased office space," says Kyle. The agreement enables Tishman to fulfill all existing financial obligations and fund costs related to future leasing and operations. In 2008, Tishman's debt was taken over by the Federal Reserve Bank of New York when Bear Stearns, the original lender, collapsed. The maturity dates on the loans were also extended from 2012 to 2014, as part of the restructuring.|