Tishman Speyer tosses the keys...Another one bites the dust...

Posted by Expert Gadget Reviewer on Wednesday, 3 March 2010

Tishman Speyer, once one of the nation's most respected commercial real estate developers, is now "exhibit A" of the commercial real estate implosion, as they leave a trail of projects collapsing into foreclosure from coast to coast.

Already infamous for the largest commercial foreclosure in history, the dramatic collapse of the Manhattan-based Peter Cooper Village and Stuvesant Town Apartment complex (purchased in 2006 for $5.4 Billion and most recently valued at $1.8 Billion), Tishman Speyer has "graced" Northern California with its presence, by "returning the keys" of the Santa Clara Towers, twin 11 story towers totaling 422,485 square feet, to San Francisco based Shorenstein Properties, according to recent reports in the San Francisco Business Times.

Santa Clara Towers

The story on Santa Clara Towers is pretty typical, Tishman Speyer purchased the project in 2007 for $213 million, and now the value of the project is less than the total outstanding debt. Rather than continue to pay off its obligations, Tishman Speyer agreed to a consensual transaction with Shorenstein, which holds the "mezzanine loan" on the project, and now will assume ownership of the buildings.

Amazing how accepted it has become to default on a loan these days.