Jones Lang LaSalle


Tishman Speyer Closes $1.1B Fund Pursuing Office Assets
January 24, 2006
By Colleen Corley, News Writer

Tishman Speyer Properties Inc. has closed its largest investment fund to date, the $1.1 billion Tishman Speyer Real Estate Venture VI. The fund has made nine investments to date, including the purchases of New York City's MetLife Building and 125 S. Wacker Dr. in Chicago, the company said this morning. The fund attracted more than 40 domestic and international investors, the company said. Tishman Speyer Properties' international investments--such as the first joint venture of its kind to develop mixed-use properties in India--piqued foreign investors' interest in the new fund. Tishman Speyer Properties executives could not be reached for comment.

Fund IV will continue to pursue Class A assets in many of the country's strongest office locales, including New York City, Chicago, Los Angeles, Boston and Washington D.C., and in the somewhat troubled markets of San Francisco and Silicon Valley, Calif. But according to market reports from CB Richard Ellis Inc., office vacancy rates in Silicon Valley and San Francisco are improving over 2004's numbers. In the 4th quarter of 2005, downtown San Francisco had just a 12 percent vacancy rate, a number comparable to that of Chicago, Los Angeles and Boston. But at 23.2 percent, one of the country's highest and nearly double the national average of 12.7 percent, San Jose, Calif., remained a sticky point in the area