Tishman Speyer Properties LP restructured $175 million in debt on a 22-story downtown Seattle office building, following arrangements earlier this year to rework loans for Chicago and Washington, D.C.-area holdings.
The Seattle building, known as Second & Seneca, has been about 15 percent vacant since Washington Mutual Inc. left after its 2008 bankruptcy filing, according to data compiled by Bloomberg. The loan was transferred to a special servicer last year to facilitate restructuring talks.
Tishman Speyer invested $15 million of new equity, according to a person with knowledge of the matter who asked not to be identified because the announcement was not yet public.
The debt restructuring “ensures that the property has sufficient capital to lease the property to stabilization and create long-term value,” said Jerry Speyer and Rob Speyer, co-chief executive officers of Tishman Speyer, in an e-mailed statement. The debt matures in 2017, according to the statement.
The Second & Seneca building became a local symbol of the real estate bubble because it changed ownership four times in 2007, the year the commercial real estate market peaked. Blackstone Group LP bought it as part of its takeover of Sam Zell’s Equity Office Properties Trust, then sold it to Beacon Capital Partners, which resold it to Goldman Sachs Group Inc.’s Archon Group LP, which sold it to Tishman Speyer.
Tishman Speyer, based in New York, bought the property for $230 million in April 2007 and it was appraised at $125.2 million in 2009, according to King County property records. The loan was bundled into a commercial mortgage-backed security.
The property at 1191 Second Ave. includes a 436,752-square foot (40,576 square meter) Class A office tower and a four-story, 74,712-foot building and data center. The property was built in 1991. Safeco Corp., a Seattle-based home and automobile insurer, is the largest tenant.