The apparent driver behind the transfer to special servicing is the expected loss of the lone tenant, SRA International, in two of the properties at the end of the year. In 2013 the portfolio had lost another key tenant, Avaya, which represented 12% of the portfolio's overall footprint. The servicer watchlist indicates that SRA International will not be renewing its leases when they expire at the end of 2015, Trepp says.

This month the servicer watchlist notes updated the portfolio's forward-looking financials.

It was determined that occupancy would drop to about 60% at the end of 2015 and projected 2016 DSCR would be only 0.65x, according to Trepp.

In 2006, the underwritten DSCR was 1.29x on an occupancy of 99%, Trepp said. The properties had been appraised at $337.5 million.

The notes also added the following comments from the sponsor: "the market has experienced four consecutive years of negative absorption and the overall vacancy rate stands at 18%. Leasing activity over the past 16 months has generated only 33k SF of new leases. NOI has declined 20%+ over the last three years."

In addition, the sponsor added that "the rental market is extremely tough" and that "rents range from $30-$32 psf, TI allowance ranges from $60-$65 per square foot, one month free rent for each year, 7% LC."

This development is reflective of a larger narrative about struggling suburban office markets, Trepp research analyst Sean Barrie tells GlobeSt.com. "Suburban tenants are starting to reassess their options and possibly downsize their footprints."

The sponsor will need to find someone to replace SRA International, which is not going to be easy, he says.

That, coupled with the portfolio's fundamentals which are, as Barrie says, "not awful but they are also not improving and occupancy is slipping as well", describes the predicament this and other suburban office property owners are facing today.