Trepp: Lakeside Loudoun Tech Office Loan Sees 35 Percent Appraisal Reduction
The $42 million loan on the 200,000 square foot Lakeside Loudoun Tech complex in Sterling, VA took a $14.6 million appraisal reduction in December, according special servicer notes on the asset.
The Lakeside property was appraised for $59.25 million in 2005, according to Trepp.
"Special servicer commentary also mentions a previously rejected deed-in-lieu of foreclosure agreement as well as a possible modification," writes Trepp. "If the property goes the path of liquidation, the appraisal reduction implies the loan could take a loss in the 35% range."
Lakeside Loudoun Tech is spread across mid-rise class A office buildings, Trepp reports. Trepp also reports the property performed well financially until 2012.
In September 2010, bizjournals.com reported that Verisign would pay $3 million to terminate its lease at 21355 and 21345 Ridgetop Circle effective November 2012 to move its employees to the former Sallie Mae headquarters at 12061 Bluemont Way in Reston.
The Verisign move would reduce occupancy in the building from around 80 percent to less than 30 percent, according to Trepp.