Credit Suisse has filed a prospectus related to its CSAIL 2016-C6 Commercial Mortgage Trust deal, which is comprised of 50 loans secured by 363 commercial properties having an aggregate principal balance of approximately $767.5 million.
Included in the prospectus is information related to the top loans, which includes a $37.5 million first mortgage loan secured by the leasehold interest in Mission Ridge I and Mission Ridge II, a 310,702 square foot Class A office complex located 15020 and 15030 Conference Center Drive in Chantilly, Virginia. The loan has a 10-year term and will amortize on a 30-year schedule following an initial interest-only period of five years.
The borrowing entities for the loan are Capstone Mission Ridge, LLC and Salus Mission Ridge, LLC, jointly and severally as tenants-in-common. The loan’s sponsor and nonrecourse carve-out guarantor is James M. Jacobson Jr. Jacobson is the current President of SALUS Federal Properties, LLC, a firm which focuses exclusively on acquiring and managing properties leased to federal agencies. Jacobson has more than 30 years of experience in the real estate industry.
The buildings, each five stories, were constructed in 2007 and are situated on approximately 16.6 acres in the Northern Virginia office market. The subject consists entirely of office space and provides for 1,085 parking spaces in an open, asphalt-paved lot.
The property is located in the Westfields business park, a hub for defense and cyber-security intelligence. The property is currently within line of site of the 2.0 million square foot headquarters of the National Reconnaissance Office and a future GSA installation. Primary access to the location is provided by US Route 50 and Virginia State Route 28.
As of January 26, 2016, the complex was 93.6% leased by five tenants.
The largest tenant at the complex, the Federal Bureau of Investigation (FBI), leases 175,000 square feet, or 56.3 percent of the net rentable area of the complex through May 2023. All of the 156,995 square feet of Mission Ridge II and 18,005 SF of Mission Ridge I is leased by the FBI. The FBI has invested approximately $41 million in its space to meet the security and technology requirements needed by the FBI.
The second largest tenant at the complex, Integrity Applications Incorporated (“IAI”), leases 89,034 SF, or 28.7% of the net rentable area of Mission Ridge I through April 2022. IAI is an engineering and software services and solutions company primarily supporting the intelligence community and other civil, defense and intelligence surveillance and reconnaissance activities. The complex serves as IAI’s world headquarters.
The third largest tenant at the property, Ball Aerospace Technologies, Corp., leases 18,044 square feet, or 5.8 percent of the net rentable area through June 2019 with two, three-year extension options remaining. Employing 15,000 employees and accounting for approximately $8.0 billion in 2015 annual sales, Ball Aerospace Technologies, Corp. is a provider of aerospace and other technology services to commercial and government customers. The company is listed on the NYSE as ticker “BLL”.
The complex meets the Interagency Security Committee’s second highest level of security specifications, Level IV, which provides for a “high” level of protection required by government intelligence agencies. The complex also meets the Department of Defense’s Unified Facilities Criteria which outlines criteria for the planning, construction, operation and maintenance for government properties.
Additionally, 30 percent of the complex consists of Sensitive Compartmented Information Facility space, in which government and government-related contractors can safely store, discuss and process sensitive information.