Tishman Speyer’s Chicago liquidity problem

Tishman Speyer’s EOP portfolio is in (even more) trouble….word is that the FDIC, who took over ownership of Lehman’s assets, has refused to fund a substantial TI /LC reserve committment Tishman has for tenanting it’s 6 MSF EOP portfolio. It will be tough to get deals done without the capital but I have to believe TSP can reduce thier principal obligations b/c of the FDIC’s unwillingness. Then again, the FDIC might cite breach of technical loan covenants like LTV.
Imagine what rents will do if TSP’s vacancy is essentially removed from the market. Fun times in CRE!