Tishman Speyer Renegotiates Debt on Seattle Office Property
Puget Sound Business Journal reports: New York real estate firm Tishman Speyer has renegotiated its debt on the Second & Seneca office building in downtown Seattle, the company announced Thursday.
Financial details were not disclosed, but in its release Tishman Speyer said, “Under the restructuring agreement, ownership will invest fresh capital, which will put the property on firm financial footing into 2017 when the current debt matures.”
According to global commercial property research firm Real Capital Analytics, Tishman Speyer purchased the property for $234 million in April of 2007 with a first mortgage of $175 million.
The debt restructuring follows successful restructuring of debt on properties owned by Tishman Speyer in Chicago and Washington, D.C. In mid-June, a partnership led by Tishman Speyer repaid $600 million owed on a group of 28 Washington, D.C., area office buildings a week ahead of a foreclosure auction. Another $100 million will be spent on capital improvements to the properties. Investors include Montreal-based SITQ, an affiliate of Canadian pension fund manager Caisse de Depot et Placement du Quebec.
Co-CEOs Jerry and Rob Speyer said the restructuring of the debt on Second & Seneca in Seattle would give Tishman Speyer sufficient capital to lease the property. They said it demonstrates the firm’s confidence in the “long-term strength of the Seattle office market.”
The New York-based real estate firm purchased Second & Seneca in 2007 as the last in a series of property sales sparked by Blackstone Group’s $39 billion acquisition of Equity Office Properties Trust. Blackstone sold 17 Seattle area properties, along with 36 properties in Washington D.C. and Portland, to Beacon Capital Inc. for $7.55 billion. Beacon then sold 15 of those buildings to Archon Group LP of Irving, Texas, which resold a portion of its acquisition to Tishman Speyer, including the Second & Seneca building.
Built in 1991, Second & Seneca is a 22-story, 436,752-square-foot Class A office tower with a companion four-story, 74,712-square-foot building and data center. The property is located at 1191 Second Ave.; approximately 16 percent of the space is vacant. Tishman Speyer also owns the 29-story 520 Pike Tower in downtown Seattle.
View the full article on Puget Sound Business Journal: Tishman Speyer Renegotiates Debt on Seattle Office Property
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