Earlier this month we wrote about how the borrower for 400 Atlantic Street in Stamford, Connecticut was expecting to lose its top three tenants, including UBS (50% of the space in that building). Yesterday, Connecticut publication The Day reported that a second Stamford building owner has hired a real estate firm to assess the market in the event UBS leaves its space.
Cushman & Wakefield is the process of reviewing the market for 677 Washington Boulevard. The 400 Atlantic Street CMBS loan is bigger than the one backed by 677 Washington Boulevard, but the deal exposure at 677 Washington is multiples bigger. The property backs a $166.4 million loan that makes up almost 70% of LBUBS 2004-C1. UBS is the sole tenant in the roughly 700,000 square-foot office. The firm’s lease ends in December 2017.
For the most part, the article speaks only to the rumors of UBS leaving Stamford over the next few years, which is not news to CMBS investors. However, one item in the story made the possibility seem much more likely. According to the piece, “[d]uring an editorial board meting with Hearst Connecticut Media, Gov. Dannel P. Malloy said he did not expect UBS to remain at the campus through the end of its lease.”
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