After a near default, NGP Group has secured a multi-year extension on a $660 million commercial mortgage-backed securities loan tied to a 2.6 million-square-foot office and industrial portfolio spanning 19 states and leased to the federal government.
The portfolio includes 41 properties — 39 office buildings and two industrial sites — leased to 16 federal agencies, according to a report by the Commercial Observer. The FBI, Citizenship and Immigration Services and the Drug Enforcement Administration account for over half of the rental income.
The properties are managed by the General Services Administration with major sites in Florida, Texas, Kentucky and Virginia. None are located in Washington, D.C.
The CMBS loan, originally set to mature in August 2025, was transferred to special servicing in May after nearly defaulting.
Iron Hound Management, led by Christopher Herron and his team, negotiated the extension with lender U.S. Bank National Association, trustee for the BBCCRE Trust 2015-GTP transaction. The new agreement extends the loan term to August 2027, with the option to further extend to August 2029.
The interest rate and principal balance remain unchanged, and no principal paydown is required.
NGP committed additional equity to support leasing and capital expenditures, aiming to enhance the portfolio’s value and leasing performance.
“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,” he said in a statement.
The firm expects the White House’s return-to-office mandate to boost occupancy and utilization rates at its properties, managing partner David Kent said in a statement. He also noted that the portfolio’s Class A assets are located in growth markets unaffected by federal workforce reductions.
NGP Group is based in McLean, Virginia.
– Joel Russell
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