Despite having handed back the keys to the massive Manhattan multifamily complex Stuyvesant Town and Peter Cooper Village in January, Tishman Speyer is “aggressively” pursuing new deals and has $2 billion under its belt ready for new acquisitions.
Since the beginning of the year, the firm has raised more than $2 billion of equity to deal with legacy investments, with an additional $2 billion of existing capital available for new deals. “We have been aggressive in looking [at deals] but patient in pulling the trigger,” Tishman chief executive officer Rob Speyer said in the July issue of PERE magazine.
Last month, Tishman agreed with its lenders to restructure a reported $1.4 billion of debt secured against five downtown Chicago office properties. The deal enabled Tishman to meet its obligations and “complete all leasing and capital projects” on the five properties, managing director Casey Wold said in a statement at the time. Wold added that Tishman would continue to pursue real estate ownership and operational positions in Chicago for “many more years”.
That month Tishman also invested $700 million of equity in the former CarrAmerica Portfolio – a group of 28 Washington DC-area office buildings – paying down $600 million of debt and providing $100 million of working capital. Brookfield Properties had reportedly acquired about half the DC-portfolio’s debt at a discount and had launched foreclosure proceedings in April.
Speaking to PERE, Speyer said the DC investment was a “difficult decision” but an important one for the firm. “This was a portfolio that we wanted to continue to add value to and enjoy the benefits of ownership and eventually the benefits of the investments we’ve made. We think Washington DC is one of the best office markets in the world, and we think this is the best portfolio in that market.”
Tishman Speyer and BlackRock Realty were forced to hand back the keys to the 80-acre Stuy Town residential complex in New York in January after defaulting on a $3 billion senior loan. The firms had been unable to convert enough rent-stabilised properties into market-rate apartments to cover debt repayments, with the deal running out of reserves in January.