A Delaware County office property has entered special servicing for the third time since 2021.

Rosetree, formerly known as Rosetree Corporate Center, has returned to special servicing ahead of a September maturity date, according to a Morningstar Credit alert.

The pair of Media office buildings were briefly in special servicing in late 2023 and early 2024, as well as from June to December 2021, with Morningstar noting that the properties “have generally operated below breakeven since the pandemic.”

The buildings at 1400 N. Providence Road are listed on Keystone Development + Investment’s website. Entities associated with the company took out a $45.5M loan on the 268K SF property when it was renovated in 2015, according to Morningstar records.

The loan balance is about $39.5M.

Keystone made a late payment in July, after the loan was transferred to special servicing June 27, Morningstar records show. The loan was previously sent to special servicer CW Capital Asset Management in November 2023 when the owner indicated it didn't have funds to stabilize the property, but it returned to the master servicer when the company became current on loan payments in February 2024, according to servicer notes. Trimont Real Estate Advisors has been the loan's master servicer since March.

In 2021, the loan was transferred to special servicing “for imminent monetary default,” according to servicer comments. It went back to former lender Wells Fargo in late December of that year after Keystone became current on loan repayments.

“This isn’t a loan that’s doing particularly well,” Morningstar Vice President Sarah Helwig said. “It looks like 2024 was a better year than 2023.”

A better year may be why the loan was pulled out of special servicing last year. The debt service coverage ratio jumped from 0.9 to 1.13 between the end of 2023 and the end of 2024, indicating it had recovered to a degree, Helwig said.

The DSCR then fell back to 0.94 as of March 31, a few weeks before it reentered special servicing.

Rosetree is 72% occupied, down from the 87% Morningstar reported when the loan was originated 10 years ago.

A spokesperson for Keystone didn't respond to Bisnow’s requests for comment.

Insurance broker ECBM is the largest tenant in the building, with a nearly 24K SF lease set to expire in November 2029, according to Morningstar.

Keystone is involved in a wide array of development projects across the Philadelphia area.

Earlier this year, the company announced it had received $42M in financing to convert a 175K SF office building near the Plymouth Meeting Mall into a 149-unit apartment complex called the Monarq.