May 24, 2010
By Allison Landa, News Editor
According to Fitch Ratings, the balance on a nearly $5 billion loan on an Equity Office Properties Trust portfolio has been moved to special servicing, with “imminent default” given as the reason.
Fitch did not list the specific properties or their locations. The balance on the loan is $4.9 billion.
Formed by real estate entrepreneur Sam Zell in 1976, EOP was once one of the nation’s largest owner of office buildings. That changed in February 2007 when the Blackstone Group purchased them for $23 billion along with the assumption of $16 billion in debt – and then sold $7 billion of EOP’s portfolio to real estate magnate Harry Macklowe. It has been speculated lately that Macklowe’s son, Billy, is angling to part ways with his father and go out on his own.