FAIRFAX, VA-The $21 million B-note for 50 West Corporate Center has made the list of Trepp's top 5 CMBS defaults for July.
Fifty West Corporate Center is a five-story, 203,388-square foot office building whose note went into special servicing in July 2012 and returned in May 2013 with a prolonged maturity, adjusted rate, and brand new hope note of $56 million that was split into two pieces with a $21 million B-note, according to Trepp.
Financials did initially turn a corner at that point, with a jump in DSCR from 0.47 to 1.53 between 2012 and 2013. But occupancy never exceeded 82% and the property was carrying an appraisal of $31.2 million, down from $69.5 million at securitization.
Last month the A-note was paid off in full while the B-note took a 100% loss, Trepp's Sean Barrie tells GlobeSt.com.
The good news, for the region at least, is that the loss is not particularly telling about problems in the DC area region. “It's a simliar story for a lot of suburban office buildings.”
FAIRFAX, VA-The $21 million B-note for 50 West Corporate Center has made the list of Trepp's top 5 CMBS defaults for July.
Fifty West Corporate Center is a five-story, 203,388-square foot office building whose note went into special servicing in July 2012 and returned in May 2013 with a prolonged maturity, adjusted rate, and brand new hope note of $56 million that was split into two pieces with a $21 million B-note, according to Trepp.
Financials did initially turn a corner at that point, with a jump in DSCR from 0.47 to 1.53 between 2012 and 2013. But occupancy never exceeded 82% and the property was carrying an appraisal of $31.2 million, down from $69.5 million at securitization.
Last month the A-note was paid off in full while the B-note took a 100% loss, Trepp's Sean Barrie tells GlobeSt.com.
The good news, for the region at least, is that the loss is not particularly telling about problems in the DC area region. “It's a simliar story for a lot of suburban office buildings.”
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
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.
