Stafford Place II Loan Transfers into Special Servicing

ARLINGTON, VA—The loan for Stafford Place II transferred into special servicing on April 17, Trepp has just learned. Stafford Place II was sold earlier this month, along with its sister building, Stafford Place I,  for $300 million by Ralph Dweck, according to a report in Real Estate Alert, which GlobeSt.com reported.

The special servicer is LNR Partners, according to the documentation.

The buildings have been a concern to Trepp since 2013 when it was announced that the National Science Foundation would be leaving Arlington in 2017, Research Analyst Sean Barrie tells GlobeSt.com. The agency occupies the entire 486,000-square foot Stafford Place I building.

It is unclear whether Stafford Place I has gone into special servicing as well, Barrie adds.

The borrower, which the paperwork indicates is Dweck, is requesting a 90-day extension. It is possible that the parties to the transaction have come to the conclusion that the current cash flow of the building cannot support the building's sales price and they have decided to sell off the loan, Barrie says.

In general, he adds, a property sale is separate from the sale of the mortgage.

Transwestern began marketing the two office buildings, along with a third in the portfolio, on behalf of Dweck Properties at the beginning of the year.

Stafford Place I, located at 4201 Wilson Blvd., is a 586,878-square-foot, 12-story office building.

Stafford Place II, located at 4121 Wilson Blvd., is an 11-story Class A office building located between the Ballston Metrorail station and the Ballston Common Mall. The 184,548-square-foot office building is 98% leased.

The third building in the portfolio is Ballston Metro Center, which located at 901 N. Stuart St. It is a 13-story, 235,000-square-foot multi-tenant office building with ground floor retail suites that are currently 47% leased due to a BRAC move-out by the anchor tenant.

GlobeSt.com was unable to contact Ralph Dweck.