Member News

Tenant Departure Weighs on Property, 2005 Office Loan Won’t Pay Off

The $56.8 million Cedarbrook Corporate Center Portfolio loan was sent to special servicing according to July remittance data. The borrower indicated that it “does not expect to be able to refinance at maturity (10/1/15) due to the potential loss of a major tenant in December 2015.” The loan is supposed to pay off in October 2015.

The collateral is comprised of three research and development buildings and one Class A office in Cranbury, New Jersey. In total, the four buildings contain 339,428 square feet of space. The expiring lease appears to be that of Rhodia, Inc, which occupies 90,000 square feet, or about 26.5% of the space. Rhodia’s lease ends in December of this year and according to original securitization documents, base rent was just under $25 per square foot. The firm’s percentage of the rent at securitization was about a third of the total base rent.

The most recent financials for the loan report a DSCR of 1.40x for 2014 on occupancy of 89%. The loan makes up 4.3% of CD 2005-CD1.

 Compliments of TREPP, LLC – a member of the EACCNY