GE Expected To Vacate Cobb County Office Tower
An $18M loan has been put on a watch list for potential problems now that GE is expected to vacate a big chunk of office space from a mid-rise office building in the Cumberland/Galleria submarket.
Wells Fargo issued a caution to bond holders of a securitized loan associated with 1300 Parkwood Circle, a nine-story, 211K SF building near the intersection of Powers Ferry Road and Windy Ridge Parkway. GE is expected not to renew its 146K SF lease after the expiration in August, according to CMBS-tracking service Trepp. The lease encompasses nearly 70% of the rentable square footage of the office building. The loan matures in 2023.
Thus far, the owner of the property — an entity called 1300 Parkwood Owner Corp., which is tied to the CEO of a New York firm, Treeview Real Estate Advisors, per Georgia state documents — is current on its payments of the loan, according to Trepp. The loan is 2.5% of a larger collateralized loan pool.
“The loan has been a strong performer to date,” Trepp officials said in a report, adding that GE's base rent was $24.31 per SF.
Master servicers of collateralized bonds will routinely place loans on a watch list in the event of a situation that can potentially cause the owner difficulties in meeting the terms of the loan in an effort to keep the owners of the collateralized bond up-to-date on developments, Trepp research analyst Sean Barrie said.
Such events can include the losses of a major tenant, financial conditions or borrower issues, conditions at the property and even the proximity to the loan's maturity date, according to Trepp.
“It is not in special servicing at this point in time. We’re simply tracking the loan and don’t have any official watch placed on it,” Barrie said in an email.