Trepp: $310M Rosslyn Portfolio Loan Gets Boost from Politico

Monday Properties Rosslyn PortfolioThe 72,000 square foot office lease for Politico‘s headquarters at 1000 Wilson Boulevard in Arlington, VA is positive news for those evaluating the $310 million interest-only loan backed by 1000, 1100, and 1101 Wilson Boulevard in Arlington, according to Trepp.

“The loan had a DSCR (Debt Service Coverage Ratio) of 1.53x in 2013, which on its face, looks solid, but the property is also carrying over $250 million in subordinated debt,” writes Trepp. “In addition, DSCR was underwritten at 2.25x. The loan was another of the notorious pro forma loans done in 2006 and 2007. The “as-is” value of the property at the time was $459 million, but the underwritten value was $841 million.”

The 10-year Rosslyn Portfolio note, which makes up almost 13 percent of the $3.2 billion pooled deal LB Commercial Mortgage Trust 2007-C3, was made in 2007, when occupancy in the three buildings with an aggregate of 1,391,496 square feet of net rentable area was 98.3 percent.

The asset was 86 percent occupied in 2012 but fell to 70 percent occupancy when Northrop Grumman departed, according to Trepp. The property also has significant GSA exposure.

It’s unclear how much Politico will be expanding with the move to 1000 Wilson Boulevard, but a Washington Post article on the lease says the company is growing “by leaps and bounds.”