But industry observers say Tishman Speyer has a number of advantages that should help it weather the storm better than many lesser-established or less-respected competitors facing similar setbacks.
Founded by Julius Tishman, Lynne’s great-grandfather, in 1898, Tishman Realty and Construction was a national company.
But by the mid-1970s, it was facing financial difficulties.
As for the Archstone deal, both Lehman and Tishman Speyer have written down at least 25 percent of their investment, sources told Those losses, according to the New York Times, “helped to bring down” Lehman, which filed for bankruptcy in September.
It’s a dizzying turn of fortune for a company long used to victory.
Both Standard & Poor’s and Moody’s Investors Service, meanwhile, recently downgraded their ratings on several bonds tied to Stuyvesant Town and Peter Cooper Village.
They warned that Tishman Speyer was having trouble converting the rent-stabilized apartments into market-rate units, and noted that the property’s value “has declined 10 percent since issuance.” What’s more, the rating services added, Tishman and its partners had already burned through two-thirds of a 0 million cash reserve fund aimed at paying for renovation costs and interest payments not yet covered by rental income.
So far, Tishman is said to have sold some billion worth of property, most of it at the peak of the market.
Its remaining portfolio is formidable and spread around the world, with holdings valued at more than billion.
Firmly established as the city’s best in class, Tishman Speyer expanded its empire even wider during the boom, most notably by beating out scores of bidders in 2006 to acquire the iconic 80-acre Stuyvesant Town and Peter Cooper Village complex for .4 billion, the priciest deal ever for a single real estate property in the U. Tishman completed its hat trick in March of this year, when the Metropolitan Transportation Authority awarded the firm the right to buy Manhattan’s largest swath of undeveloped land: the West Side rail yards, which run from 30th to 33rd streets between 11th and 12th avenues.