WASHINGTON, DC–Trepp notes that when — as it appears that it will — Pension Benefit Guaranty Corp. moves out of 1200 K St., NW, in late 2018, it will vacate 98% of the 389,561-square foot building. After which, other dominoes may start to fall.
Trepp writes:
The property backs the $126.1 million 1200 K Street loan, which makes up 13.3% of the remaining collateral behind DBUBS 2011-LC1A. The loan is a tenant-in-common structure, with Brookfield listed as the property manager. The note is current and matures in early 2021. The loan was underwritten with an LTV of 63 in 2011, and almost 9% of the initial principal balance has amortized away.
Two years ago, almost to the day, Brookfield Property Partners sold a 49% stake of a local office portfolio to joint venture partner AustralianSuper for $349 million. 1200 K St., NW was one of those eight properties, which at the time were 96% occupied.
PBGC Shoehorns Employees Into The Portals
Trepp warned CMBS investors via a trading alert last year that the PBGC was looking to move.
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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.
