Corporate Directors Group Moving HQ to Monday Properties’ Rosslyn Office Tower
By Keith Loria and Andrew Coen January 22, 2024 1:36 pm
reprints
National associations are coming to the office market’s rescue.
The National Association of Corporate Directors (NACD) has inked a 40,000-square-foot lease at 1100 Wilson Boulevard, a 31-story office tower in Rosslyn, Va., and will relocate its headquarters later this year.
NACD will be moving from 1515 North Courthouse Road in Arlington, where it currently has a similar footprint.
Monday Properties owns the 522,000-square-foot building, which is part of a two-building complex that also consists of 1000 Wilson Boulevard.
“NACD’s decision to relocate was driven by the building’s exceptional amenities and its vibrant, walkable business environment,” John Wharton, senior vice president of leasing for Monday Properties, told Commercial Observer. “The move reflects a broader flight-to-quality trend, with companies prioritizing trophy and Class A spaces with premium features and dynamic amenities that create an optimal return-to-work environment for employees.”
The complex is part of a seven-property, 2.1-million-square-foot portfolio that went into monetary default last summer after missing a payment on a $841 million commercial mortgage-backed securities (CMBS) loan last May. The company is working with the special servicer while making upgrades to the portfolio.
“Our commitment remains unwavering to the long-term sustainability of our assets,” Wharton said. “We are working with the special servicer and its lending partners to recapitalize our Rosslyn portfolio.”
The CMBS loan, which was part of the GSMS 2021-ROSS deal originated by Goldman Sachs, includes a $691 million senior mortgage loan and $150 million of mezzanine debt. It is now more than 90 days delinquent, according to Jonathan Ramel, vice president of Morningstar Credit Analytics.
“The initial reason the loan went into default was maturity/balloon default as the loan had an initial maturity date in June 2023, with a final maturity date in June 2026,” Ramel said. “The mezzanine note was transferred to the special servicer in May 2023 after the borrower missed the May 2023 payment and indicated it did not anticipate being able to refinance or extend the loan at the initial maturity date.”
The 1100 Wilson property accounts for 24.9 percent of the portfolio’s net rentable area and was 73.7 percent occupied as of March 2023 compared to 70.8 percent at origination in November 2021, according to CRED iQ. The new NACD lease represents 7.5 percent of the rentable space.
The loan was scheduled to mature in June 2023 with three one-year extension options. It transferred to special servicing in May 2023 due to monetary default, with Trimont Real Estate Advisors acting as the special servicer.
Trimont is reviewing file information provided by the borrower of executed pre-negotiation agreements and required appraisals of the portfolio, according to special servicer commentary from Jan. 9 provided by CRED iQ. The commentary also notes that a cash-management agreement was activated, which involves the servicer taking control of cash flow if the debt service coverage ratio falls below an acceptable level.
“Throughout this process, we have continued to invest in the enhancement of our portfolio, focusing on improvements that contribute to its long-term value and desirability. As this deal underscores, we have demonstrated our ability to successfully execute transactions, and our day-to-day operations platform remains best in class.”
At 1000 Wilson, which also includes 55,000 square feet of retail space, Monday Properties delivered a 12,000-square-foot conference facility and lounge in May 2023. The space features a 210-person multipurpose room, three additional breakout conference rooms and a lounge and entertaining space.
“After an extensive search, the addition of the conference facility to the existing amenity stack at the towers proved to be a differentiator for NACD’s future headquarters,” Wharton said. “The company, which was seeking to elevate its employees’ overall workday experience, considered current and future demographics of their employees, as well as the connectivity that Rosslyn provides.”
The building is also home to pasta restaurant Sfoglina by Michelin-starred chef Fabio Trabocchi.
Michael Goldman, Kamis Lawrence and Claire Poole from Transwestern represented NACD in the lease, while Yorke Allen, Lee Brinkman, Herb Mansinne and Robert VeShancey from JLL, along with Wharton, represented the landlord.
Keith Loria can be reached at Kloria@commercialobserver.com.
Andrew Coen contributed reporting. He can be reached at acoen@commercialobserver.com.
