Crow Files Chapter 11

Crow Winthrop Operating Partnership, the owner of the Park Place office complex in Irvine, filed a plan Friday in its pending U.S. Bankruptcy Court case to reorganize its debts.

Under its Chapter 11 plan, Crow would cede a 90% interest in the 1.8-million-square-foot office project to a newly formed real estate investment trust, Jamboree Office REIT, which is made up of some of the company’s debt holders.

The due date on the remaining debt would be extended to 2002. The building will continue to be managed by Winthrop Management, an affiliate of the bankrupt partnership.

Crow filed its bankruptcy petition to stall a foreclosure by its lenders. Its problems began last April when it missed a $202-million balloon payment on the property.

In an unrelated event, Winthrop said that Prudential Real Estate Affiliates will relocate its headquarters from Costa Mesa to the Park Place complex. Prudential signed an eight-year lease for 56,000 square feet, including some of major tenant Fluor Corp.’s unused space.

The deal was reportedly worth more than $11 million.

(Melinda Fulmer)