WASHINGTON, DC—Trepp and Fitch Ratings have reported that the $54.6 million loan on 2 Rockledge Centre has been sent to special servicing. The note, which is slated to mature next month, represents 2.6% of the collateral behind the commercial mortgage pass-through certificates series in which they are held -- BACM 2006-2, according to Trepp.
Comments on the servicer watchlist indicate that the borrower had requested the move and is now seeking a modification, says Trepp Research Analyst Sean Barrie.
Trepp first flagged this loan almost a year and a half ago because of uncertainty surrounding the fate of the National Institute of Health's 247,000-square foot lease there. NIH is the sole occupant of the building and the lease is expiring this month. Trepp is trying to determine if that is the cause of the loan being shipped to special servicing.
Trepp also flagged a loan for 6100 Executive Blvd. last year due to NIH exposure, Barrie continues.
"While it is not currently with the special servicer, its status is more transparent," he says. "According to May servicer watchlist notes, "the major tenant" will not be renewing. At one time, servicer data indicated that NIH had 100% of the space with a lease that ended in 2010." Now, he says, "newer data shows an NIH lease that ends in February 2016 and a GSA lease ends in September 2015.
"It is unclear if the "major tenant" represents the September lease or all GSA leases. The property backs a $27.9 million note that makes up 1.4% of CD 2006-CD3."
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
