S&P lowers rating for Tishman Speyer's D.C. portfolio - Washington Business Journal:

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Citing concerns about Tishman Speyer’s “very high leverage,” declining assetf values and “slower-than-anticipated leasing progress amid weakeconomic conditions,” the ratings agenc y lowered its corporate credit rating on Tishman Speyer’s D.C.-ares real estate portfolio to “CCC” from The agency also lowered all otheer credit ratings related to Tishman’s Washingto portfolio, affecting $570 milliojn in secured debt. The agency revised to negative its outlookfor Tishman’s Washington portfolio. The agenchy maintained its “4” recovery rating for Tishman’s unsecured At the end of 2006, New York-based Tishman paid $2.
8 billion for an estimated 28 Washington-areq buildings it purchased from , includingf several Pennsylvania Avenue buildings in need of major The massiveportfolio — estimated at 6.3 million feet — cost Tishman abouy $444 per square foot. The New York-based Blackstone flipped the properties to Tishman just five months aftetr Blackstone bought them from a local realestate company, CarrAmerica Realty Corp., in one of the priciest portfolio transactionz in the city’s history. Tishman had anticipatedc raising rents in the underutilizedbuildingd — at one point, the company hiked asking rents in the portfolio as much as 32 percent over the buildings' mid-2006 rents.
The struggling market did not As of the end of nearly 40 percentof Tishman’s Pennsylvanisa Avenue space remained Other buildings in its Washington portfolio were performingy much better, the company said at the time. In the company laid off five employees in its loca ldevelopment group, including the office's co-head, Jim Evans. Neither Tishman nor Standard & Poor's coulde be reached for comment.