NGP Group Lands $660M Loan Extension for Federal Office Portfolio 

NGP Group has inked a three-year loan extension for a $660 million debt package tied to a national office and industrial portfolio that spans 19 states and is leased to the federal government, Commercial Observer can first report.

Iron Hound Management’s Christopher Herron, Kevin Thompson, Anthony D’Amelio and Will Forbes negotiated the modification after the borrower committed additional equity to the portfolio’s 41 properties to position them for new leasing and future capital needs. Argentic is the loan’s master servicer.

Debt on the 2.6 million-square-foot portfolio consists of a $660 million commercial mortgage-backed securities, single-asset, single-borrower (SASB) deal that transferred to special servicing in May ahead of its August 2025 maturity date. 

The agreement struck with U.S. Bank National Association, trustee for the BBCCRE Trust 2015-GTP transaction, extends the loan term to Aug. 6, 2027, at the same interest rate, with no principal paydown, and with the ability to extend until August 2029, according to Herron. 

“The NGP team was proactive in their desire to support these assets and came to Ironhound well in advance of the August 2025 maturity date to facilitate discussions with the special servicer about an extension of the existing SASB loan,” Herron said. “This closing ensures that operations, along with leasing and capital expenditure needs at the property, will be well capitalized throughout the extension term as the NGP team continues to lease vacant space and create value across this portfolio.”

The portfolio comprises 39 office buildings and two industrial properties leased to 16 agencies, according to Fitch Ratings. Each building has a single tenant. States with the largest concentrations are Florida, Texas, Kentucky and Virginia. The FBI, Citizen and Immigration Services and the Drug Enforcement Administration account for more than half of the portfolio’s total rent obligations, according to Fitch. 

Herron noted that the portfolio benefits from having Class A assets in growth markets unaffected by the federal government’s workforce reductions, and that none of the properties is in Washington, D.C. He added that the White House’s return-to-office executive order will also help boost occupancy and lease stability in the portfolio, which is managed by the federal General Services Administration (GSA). 

“By injecting additional equity, we’re not only addressing immediate leasing and capital obligations, but also positioning the portfolio for sustained excellence amid evolving market dynamics,” David Kent, managing partner at NGP Group, said in a statement. “With the federal return-to-office mandate bolstering utilization rates in these mission-critical facilities, and our team’s deep GSA-rooted expertise guiding every decision, this agreement — which extends the term for two years with options to 2029, while also maintaining the current interest rate and principal loan balance — empowers NGP to navigate toward normalized capital markets while delivering unwavering value to our investors and stakeholders.”

Andrew Coen can be reached at acoen@commercialobserver.com.