Vornado loan for Skyline portfolio in Falls Church goes on a watch list
- October 3, 2011
Trepp, a New York based real estate research and analytics firm, has placed a mortgage-backed securities (CMBS) loan sponsored by Vornado for the Skyline Portfolio in Falls Church on its watch list. This is a designation given to assets facing challenges that have the potential to cause default.
At Vornado’s eight-office building campus, departures by federal agencies are drawing down occupancy. The company’s $678.2 million Skyline Portfolio loan is backed by the campus, which totals more than 2.5 million square feet. According to Citybizlist, when the loan was secured, the federal General Services Administration had about 1.4 million square feet of the property’s space, or 55 percent. Its leases expired intermittently through 2015, and the loan does not mature until 2017.
The Defense Information Systems Agency (DISA) does not plan to renew its 400,000-square-foot lease at Seven Skyline, the second largest of the buildings in the portfolio. Citybizlist reports that DISA’s impending departure will bring the consolidated occupancy across all the Skyline Portfolio properties down to 67 percent, down from 92 percent occupancy at the end of 2010. Another large tenant, the Department of Justice, has a lease for 195,537 square feet at One Skyline Tower until 2015.