Posted by: BayAreaComRE | March 1, 2010

SV Business Journal: Tishman Speyer Walks Away from Santa Clara Towers

The Silicon Valley Business Journal just reported that Tishman Speyer is walking away from their investment and operations at the former McCandless Towers, the high identity brown towers at the corner of Highway 101 and Great America Parkway in Santa Clara. “Tishman cited dropping property values as the reason to give the property [back].”

“A Shorenstein spokesman described the deal to assume ownership of the two 11-story towers as ‘cooperative.’ No one contacted for this story would say whether any money changed hands.

Given the tough real estate market, Shorenstein is the logical owner given that the San Francisco developer purchased the $51 million mezzanine loan on the 210,000-square-foot towers in 2008.

Tishman Speyer bought the real estate, built in 1986 and 1988 from Birk McCandless, for $213 million in 2007.”

Shorenstein Properties will be taking over, a process which we discussed a while back, which occurs when a senior loan holder is next in the capital stack.

McCaffee occupies the majority of Tower 2 through 2013 while Tower 1 sits nearly 40% vacant.

The entire story can be found here.

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Responses

  1. […] From The Registry: “Network and systems security provider McAfee Inc. has signed the largest Silicon Valley lease of the first quarter. The same sources said McAfee also has signed an option agreement to lease another 40,000 square feet from Sobrato in the same complex in the next 60 days. The two buildings are separated by less than a mile from McAfee’s current Santa Clara headquarters at McCandless Towers. McAfee has three years remaining on 200,000 square feet in the distinctive, two-building McCandless complex, which belongs to Shorenstein Properties. San Francisco-based Shorenstein acquired the 419,000 square feet earlier this year after Tishman Speyer Properties failed to restructure their debt.” We reported on this story a while back, click here to revisit. […]


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