“Tranche warfare” pits lenders, investors in $700M debt battle over Boston tower

The Saint Reportsaintblog, Urban planning0 Comments

hancock-towerIn Boston, the John Hancock Tower is at the center of a fight among a group of lenders and investors, just two years after private-equity firm Broadway Real Estate Partners bought the iconic office building with help from some big names on Wall Street, according to a Wall Street Journal report by Lingling Lei and Alex Frangos.

Posted by the Work blog, the battle for control of the John Hancock Tower could signal how scores of similarly distressed real-estate financing deals will play out.
Earlier this month, a Broadway fund defaulted on $700 million of debt tied to the Hancock tower and other buildings. The default triggered a scramble among investors holding debt tied to the acquisition, with some pushing for immediate foreclosure and others pushing to extend the loan in hopes of a real-estate rebound.

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