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May 21, 2012

Terminal Tower, Cleveland headquarters of Forest City Enterprises, has overdue loan; developer must go to "special servicer" to revise terms

Atlantic Yards Report

Crain's Cleveland Business, in Forest City overdue on Terminal Tower loan: Developer houses 500 workers in city icon, reports (sub. required):

A $38 million loan secured by Terminal Tower, the Public Square skyscraper the Guide to Cleveland Architecture calls β€œthe landmark of the city,” is overdue.

How that debt will be resolved by the building's owner, real estate giant Forest City Enterprises Inc. β€” which has its headquarters and more than 500 employees in the 52-story structure β€” remains to be seen.

As with other buildings that are worth less than previously valued and not delivering the once-predicted revenues, the loan has been assigned to a "special servicer" to revise and extend loan terms and even potentially re-assign ownership.

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Posted by eric at May 21, 2012 11:49 PM