Skokie, Ill.-based Balcor has purchased a 50% interest in Los Angeles-based Tishman West Management Corp.'s operating assets for $20 million, and the two companies have signed a joint-venture agreement to develop, lease, manage and build commercial properties.
Balcor, a Shearson Lehman Hutton subsidiary that manages more than $8 billion in assets, began a corporate diversification program three years ago. Tishman West is the county's largest building management company and is one of the nation's biggest diversified commercial developers.
The new entity will be called Tishman West Cos. Under terms of the agreement, Balcor will not receive an interest in any of the properties already owned by Tishman West--a portfolio that includes partial ownership of City Tower in Orange, the Tishman Midvale building in Westwood, and the Westwood Terrace and Westwood Atrium in West Los Angeles.
Source of Financing
However, Balcor will share in Tishman West's management and leasing contracts for buildings that include downtown's Arco Plaza, Security Pacific Plaza, Biltmore Tower and Century City's Fox Plaza.