Tishman restructures $1.4B Chicago office portfolio loan

Manhattan-based property owner Tishman Speyer has reached a $1.4 billion loan restructuring agreement on a portfolio of five Chicago office buildings, according to Crain’s. A group of lenders, including the Federal Reserve Bank of New York, had assumed control of the loan following the collapse of Bear Stearns, the original lender, in 2008. Tishman has been in negotiations to restructure the loan for months, after the Fed froze the buildings’ reserve accounts, making it impossible to pay for building improvements and leasing commissions. Under the new restructuring agreement, Tishman hopes it will be able to attract more tenants to the 5.7-million-square-foot office building portfolio, which it acquired from Blackstone Group for $1.7 billion in 2007 with $1.4 billion in debt. [Crain’s]