Lehman Bros. bankruptcy jeopardizes $19 million in local tax payments

A number of buildings in Austin owned by the Thomas Properties Group could be in jeopardy because of the massive Lehman Brothers Holdings bankruptcy.  The owners of the 10 high-profile office buildings, including the Frost Bank Tower, might not be able to pay the $19 million owed on a tax bill due in January.

 

Lehman Brothers has refused to honor a promised $100 million revolving loan to the properties, according to a filing in New York bankruptcy court. TPG-Austin, the partnership that owns the buildings, said in court documents it might have to file for bankruptcy unless Lehman comes up with the money.

 

Lehman Brothers provided a $192.5 million loan to buy the properties, which sold for $1.1 billion last year. Lehman is a 50-percent owner of the partnership, along with Thomas Properties Group and the California State Employee Retirement System.

 

 In addition to the Frost Bank Tower at 401 Congress, the properties include:

 

• Great Hills Plaza, 9600 Great Hills Trail;
• Park 22, 8601 Ranch Road 2222;
• Westech 360, 8911 Capitol of Texas Hwy.;
• 300 West Sixth St.;
• One American Center, 600 Congress Ave.;
• One Congress Plaza, 111 Congress Ave;
• San Jacinto Center, 98 San Jacinto Blvd.;
• Research Park Plaza, 12401 Research Blvd.; and
• Stonebridge Plaza, 9600 N. MoPac Blvd.

 

TPG-Austin says Lehman refused to honor a Sept. 17 request for the entire revolving loan amount. TPG-Austin said without the loan funds, it could not pay the tax bill on properties in January.