Morgan Stanley transferred Crescent Real Estate Equities LP, a real estate business it took private in 2007, to a joint venture formed by Crescent’s primary lender, Barclays Capital, and Goff Capital, a real estate investment firm, executives confirmed.
Barclays Capital originally provided a $3.3 billion loan for the $6.5 billion privatization in 2007. The loan, now at $2 billion, was due in August but the loan term was extended while the parties negotiated, according to SEC documents filed by Morgan Stanley. The new venture will be called Crescent Real Estate Holdings.
The new joint venture will “continue to manage the properties and hold the company through the current cycle in the market,” said Haejin Baek, managing director and head of commercial real estate capital markets at Barclays Capital.
John C. Goff, founder of Goff Capital, is the new chairman and CEO of Crescent. Mr. Goff had been vice chairman and CEO of Crescent until its sale to Morgan Stanley.