Trepp: COPT Has Other Loans Worth Watching

As this site reported earlier this week, the $146.5 million COPT Office Portfolio loan has been sent to a special servicer and is facing imminent default, according to Fitch.

All payments on the loan are current, according to Trepp, but servicer notes from March 2013 say reduced occupancy at the 14 properties that back the loan is responsible for a lowered debt service coverage ratio.

On Wednesday, Trepp said The COPT Office Portfolio is not the only Corporate Office Properties Trust (COPT) loan worth watching.

SEE: Fitch: Imminent Default for $146.5M COPT Office Portfolio Loan

225_VA_WCC_15010 Conference Center Dr_R033379

15010 Conference Center Dr

According to Trepp, the $150 million COPT Office Portfolio (Rollup) loan in the CMLT 2008-LS1 CMBS transaction is backed by two Chantilly, VA offices, one of which is facing a significant departure. Northrop Grumman will be exercising an early lease termination and vacating its space this summer. The company occupies 65% of the space, according to Trepp.

The lease is covered through early 2014 and has a $4.7 million lease termination fee, Trepp reports.

Roger Waesche, COPT’s President and Chief Executive Officer, discussed the departure during the company’s 2013 Guidance Conference Call in January.

“It just had to do with consolidation,” said Waesche of Northrop Grumman’s decision to leave. “It had nothing to do with the location. The location is very strong. It’s an amenity-rich building and we feel very good about our ability to re-lease that space.”


Westfields Corporate Center

In July 2006, COPT announced that it had signed Northrop Grumman to a 145,959 square foot lease at the Washington Technology Park II (WTP II), which is located in the Westfields Corporate Center at 15010 Conference Center Dr. in Chantilly (pictured above).

Trepp says another loan, the $108.5 million COPT Office Portfolio – Roll-Up that is part of the MSC 2006-HQ8 CMBS transaction, is on servicer watchlist “but no major issues appear to stand out.”

Trepp says COPT also has a $103 million portfolio loan in the GSMS 2006-GG6 CMBS deal that is neither on watchlist nor with a special servicer.