Tishman Speyer Buys Back 19-Acre L.A. Parcel
- Aug 13, 2010
By Paul Rosta, Senior Editor
In the midst of widely publicized difficulties tied to its loan default on Manhattan’s Stuyvesant Town residential property, Tishman Speyer has quietly regained control of a Los Angeles development site that had been in receivership since last year.
On Tuesday, Tishman Speyer closed a $35 million deal to buy back a 19-acre section of the Playa Vista master-planned development in west Los Angeles, a source with knowledge of the transaction confirmed today. The parcel is part of a 56-acre site that came under receivership last December after Tishman Speyer defaulted on a $155 million loan that enabled Tishman Speyer and Walton Capital L.L.C. to buy the property for $200 million in 2007. The remaining 37 acres include historic industrial buildings constructed by Howard Hughes. That portion remains under the supervision of Trigild, a San Diego-based turnaround specialist, which has served as the property’s receiver since December 2009.
Tishman Speyer regards the 19 acres it has just re-acquired as the most desirable portion of the larger parcel because it is adjacent to a four-building, 325,000-square-foot office complex that came on line earlier this year (pictured). That property is the first phase of the Campus at Playa Vista. Belkin International and the University of Southern California lease 70 percent of the new property, which never came under receivership. Tishman Speyer also targeted the parcel for reacquisition because it borders a recently completed nine-acre park. As market conditions allow, Tishman Speyer plans to develop an additional 600,000 square feet of office development. The property is situated in the eastern part of Playa Vista, a 1,087-acre master-planned community in west Los Angeles.
This week’s buyback in Los Angeles reflects Tishman Speyer’s larger strategy of resolving financial issues on properties that are at risk of default. A source confirmed a published report today that the firm has reached terms with Eurohypo on the $105 million acquisition loan on Dublin Corporate Center in Dublin, Calif., a San Francisco suburb. Tishman Speyer bought the 440,000-square-foot complex three years ago and will settle the debt for $55 million, the San Francisco Business Times reported today. Tishman Speyer has likewise targeted properties in Washington, D.C., Chicago and Seattle for debt restructuring, re-acquisition or a fresh capital infusion.