Member News

Former AT&T Office in New Jersey Auctioned Off; Big Loss Forthcoming

Last month, EACCNY member Trepp, LLC noted that the property behind the long-troubled, $41.3 million AT&T Consumer Services Headquarters loan would be auctioned off in early June. That auction took place and a Kroll email from yesterday indicated that the final bid was $9 million. That was said to have met the reserve price and the asset has been sold. Kroll is now expecting a 100% loss on the asset based upon that sales price.

The face amount of the REO asset represents 75% of the remaining collateral behind CSFB 2004-C5. The loan is currently carrying an appraisal reduction of $38.2 million.

The collateral is a 387,000 square-foot office building in Morris Township, New Jersey that was built in 1979 and renovated in 2004. In November 2013, Trepp reported that the property would be losing its sole tenant, AT&T. A 2004 appraisal valued the building at $77 million, but that was dropped to $13.5 million in August 2014 and to $9.2 million in 2015.

The auction was held through Ten-X.com.

© 2016 Trepp, LLC – a member of the EACCNY