$89M CMBS Loan Backed by Chicago-Area Corporate Campus Sent to Special Servicing
Built in 1986 and renovated in 2017, the Westbrook Corporate Center had been appraised at a value of $136M upon its 2018 securitization
By Brian Pascus October 1, 2024 1:41 pm
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An $89 million commercial mortgage-backed securities (CMBS) loan secured by Westbrook Corporate Center, a 1.14 million-square-foot office campus in suburban Chicago, has been sent to special servicing due to a nonmonetary default, according to an alert from Trepp.
The $88.8 million loan is expected to default before its January 2028 maturity. It’s split into three securitized bonds: a $35.9 million loan is 3.54 percent of BMARK 2018-B4; a $35.9 million portion is 4.03 percent of MSC 2018-H3; and a $17 million piece is 1.81 percent of BMARK 2018-B5. Together, the three bonds are part of CMBX 12.
The loan had been current throughout its term, according to Trepp.
Built in 1986 and renovated in 2017, Westbrook Corporate Center had been appraised at a value of $136 million upon its 2018 securitization. The multi-building, Class B office campus consists of five 10-story towers connected by various concourses. Located in Westchester, Ill. — a suburb about 16 miles from Downtown Chicago — the property is near both O’Hare International Airport and The Loop central business district.
The nonmonetary default appears to be driven by struggling debt service levels. Last year, the property’s debt service coverage ratio (DSCR) sat at a healthy 1.35x, with occupancy at 68 percent; this year, without much change in occupancy, the DSCR fell to 0.99x. The Trepp special servicer notes stated that “servicing commentary states that lower occupancy coupled with higher expenses has impacted the DSCR.”
CBRE (CBRE), the leasing broker on the campus, did not respond to requests for comment.
Brian Pascus can be reached at bpascus@commercialobserver.com
