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$101M WorldCom Complex Sale a No-Go

ARLINGTON, VA-A $101-million deal for Tishman Speyer affiliate TST/Pentagon City WorldCom Inc.'s former MCI headquarters gets the thumbs-down from a bankruptcy court judge. The 540,000-sf, two-building property could end up being leased for the time being.

By Barbra Murray | Updated on October 22, 2002

ARLINGTON, VA-The proposed $101-million bid for of WorldCom Inc.’s former MCI headquarters in Pentagon City by Tishman Speyer affiliate TST/Pentagon City has fallen through, according to court documents. A US Bankruptcy Court judge opposed, leaving the two-building, 540,000-sf property open for lease. And while court documents do not clearly explain the reasons behind the decision, rumor has it that WorldCom attorneys believe they can get more for their money.

“Referring to a hearing on the matter held on Oct. 1, Judge Arthur J. Gonzalez later signed-off on an official document stating, “the Court, having found and determined that the legal and factual bases set forth in the record of the hearing, warrant denial of the motion.” WorldCom attorneys now await a ruling from the court, scheduled for November 12, on the company’s request to hire a joint venture led by Hilco Real Estate LLC to take control of the property’s fate. Already, the buildings are listed–without lease or sales pricing–on Hilco’s website. It is rumored that WorldCom lawyers believe leasing the property would increase the complex’s value. Other press reports hint that the company is currently attempting to orchestrate a leasing deal with the Transportation Security Administration, which is in the market for about half a million sf of office space.

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