The fund has a value-added strategy focusing on investment in class A office properties in six major US markets--New York City, Boston, Washington, DC, Chicago, Los Angeles and San Francisco/Silicon Valley. Fund VI attracted more than 40 investors worldwide including large corporate and public pension funds.
So far, nine investments have been made. Those acquisitions include 200 Park Ave., also known as the MetLife Building, 125 South Wacker in Chicago and 400 South Hope Street in Los Angeles. Also in the portfolio are three Beverly Hills properties that make up approximately 10% of the class A office space in that submarket. They are the 300,000-sf Maple Plaza at 345 N. Maple Dr., the 130,000-sf Beverly Mercedes Place at 9242 Beverly Blvd. and the 165,000-sf 407 North Maple Dr. building.
The firm's $1.72-billion acquisition of the landmark MetLife Building was last year the largest single building sale in the city's history. TSP purchased the 2.8-million-sf property, which connects to Grand Central Terminal, from MetLife. Last September, Tishman Speyer acquired the 26-story, 701,000-sf 400 S. Hope St. building from a subsidiary of the O'Melveny & Myers law firm. Terms of the deal were not disclosed, but industry sources told GlobeSt.com that the buyer paid approximately $250 million for the class A office building.
"The strong response to this fund offering clearly demonstrates the great investor demand for high-quality US office property instruments," says Jerry I. Speyer, president and chief executive officer of Tishman Speyer. According to a company spokesperson, other investments are planned, and there is no definite timeframe as to whether the properties will be held long term.
The fund closure follows two recent Tishman Speyer real estate investment forays into developing markets abroad including partnering with the private equity arm of ICICI Bank to develop in India. The company also formed a joint venture with GSC Partners to develop and acquire properties in China. Since it's founding in 1978, the company has acquired or developed a portfolio of more than 76 million sf valued at over $23 billion.
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