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Watch List: Specially Serviced Office Loans with Lease Expiration Issues

October 10, 2012

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PropertyAddressCur. Loan Bal.Net Rentable SF; % of SF Orig. Sched. to Exp. 1-12 monthsCMBS; Special ServicerComment

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Bank of America Plaza600 Peachtree Tree, Atlanta, GA$263,000,0001,253,499; 40%JPM 2006-CIBC17; CWCapitalPaul Hastings with 138,185 SF comprising 10.7% of the property's nrsf, expires 10/31/2012.

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Connecticut Financial Center157 Church St., New Haven, CT$130,400,000466,049; 48%BofA 2007-2; Helios AMCA major lease expired on 6/14/2012 causing occupancy to drop to 70%. Workout negotiations are in process.

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Glendale Center611 N. Brand Blvd., Glendale, CA$125,000,000382,841; 58%Wachovia Bank Commercial Mortgage Trust - 2006-C27; LNR PartnersBank of America with 89,409 SF comprising 23.1% of the property's nrsf, expires 4/30/13.

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Aegon Center400 W. Market St., Louisville, KY$104,493,746759,650; 28%GCC 2004-GG1; CWCapitalLoan transferred to special servicing effective 3/8/12 for Imminent Monetary Default based on a large tenant's lease expiry in late 2012.

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Penn Mutual Towers & Washington Square Garage510-530 Walnut St. & 249 S.h 6th St., Philadelphia, PA$101,980,761853,840; 26%ML-CFC 2006-2; CWCapitalThe property is 78% leased as of August 2012. SS is pursuing a foreclosure strategy.

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Harbor Plaza181-290 Harbor Drive, Stamford, CT$75,889,460731,202; 31%JPM 2004-CIBC8; OrixA major tenant vacated a long time ago and continued to pay rent, but lease expired 10/31/11, precipitating the payment default.

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Millennium in Midtown10 10th St., Atlanta, GA$71,483,928410,624; 60%GS 2006-GG6; TorchlightTransferred to special servicing 8/17/2012 due to imminent default anticipated from vacancy of PWC in October (37% of the building).

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One Orlando Center800 N. Magnolia Ave., Orlando, FL$68,250,000355,856; 23%LB 2007-C3; LNR PartnersHanover Life Reassurance with 26,590 SF comprising 7.5% of the property's nrsf, expires 12/31/2012.

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2400 Ogden Avenue2400 Ogden Ave., Lisle, IL$18,116,562120,815; 32%CS 2007-C5; C-IIIThe loan was transferred to special servicing effective 6/29/2012 due to the borrower's statement that it is unable or unwilling to remit future loan payments.

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Crown Point Corporate Center400 Professional Drive, Gaithersburg, MD$14,831,084129,030; 31%MS 2003-T11; C-IIIThe borrower has indicated that the property is not generating sufficient cash flow to fund operating expenses and debt service payments and has requested a loan modification.

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Raintree Office Center8801 and 8901 E. Raintree Drive, Scottsdale, AZ$9,247,968111,126; 22JPM 2004-C1; TorchlightA new lease has been executed for 22% nrsf bringing occupancy to 69%. Special sServicer and borrower are negotiating a potential restructuring.

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Bel Air Park II2970 Cottage Hill Road, Mobile, AL$5,493,922123,192; 80%GMAC 2001-C1; BerkadiaThe borrower stated that the building is worth significantly less than loan balance if sold on an all-cash basis and requested for the modification of the loan.


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