TREPP Trading Alert: Met Life Investments Signs On for New NJ Headquarters, Will Leave Single Tenant Office Behind ’03 Deal

For owners of CSFB 2003-C5 bonds, the deal just got a lot more interesting. It was reported today that Metlife Investments will be moving its 850 employees to a new, yet-to-be-constructed office in New Jersey. The firm plans to move 2.5 miles away from its current office to a four-story complex on Whippany Road in Morristown, which will be developed by Vision Real Estate Partners and Rubenstein Partners.

MetLife Investments is currently located at 10 Park Avenue in Hanover Township, New Jersey. MetLife is the sole tenant in the 154,766 square-foot building with a lease that ends in June 2016. The property backs a $14.4 million CMBS loan that represents 78% of the remaining collateral behind CSFB 2003-C5. The loan is current, not on servicer watchlist, and matures in early 2017. The asset is known as Ravine Development in the CMBS deal.

There are three classes left in the CSFB deal: tranches J, K, and L. All three classes have some portion covered by the $14.4 million Ravine Development loan. One silver lining is that the loan has amortized down from $26.5 million at securitization to $14.4 million as of April. The property was appraised for $41 million in 2003.

Compliments of Trepp, LLC a Member of the EACCNY