Prince George Center II in Hyattsville Nears Default
Posted March 10, 2011
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A $40.4 million loan on the Prince George Center II in Hyattsville, MD has been transferred to a special servicer due to imminent default, according to Fitch. The special servicer is Midland Loan Services.
According to regulatory filings, the Prince George Center II loan is secured by a first mortgage encumbering the 394,578 square foot office building, which is located on 6.84 acres in Hyattsville.
The ten-story commercial office building is fully occupied by the U.S. Department of the Treasury through a lease with the GSA. The Treasury has been a tenant at the property since 1992. At the time of the loan, the lease was scheduled to run through 2012, and the Treasury was not allowed to terminate its lease early.
The loan was originated on November 30, 2005 and its scheduled maturity date was December 8, 2015. The appraised value at the time of the loan was $66 million.
The transfer of the loan to a special servicer comes on the same day that the GSA made a preliminary decision to keep the Department of Health and Human Services at the Parklawn Building in Rockville, a major blow to the effort by PG County officials to land the GSA tenant, according to the twitter feed of the Washington Post's Jonathan O'Connell. O'Connell said the HHS would be signing a 15-year lease with JBG, which recently bought into the building.
SEE: www.twitter.com/OConnellPostbiz
The Prince George Center II building, which was originally constructed in 1968 and renovated in 1992 and 2002, was designed by Edward Durell Stone, the architect who designed the Kennedy Center for the Performing Arts in Washington DC and the Museum of Modern Art in New York City.
It is a part of Prince George's Metro Center, a four building office complex that anchors University Town Center. University Town Center includes a 910-bed student housing complex for the University of Maryland that is less than a mile north of the Prince George Center II Property, a 14-screen cinema, and a grocery anchored retail development. Apartment and condo units have also been planned and constructed as part of the development.
The original borrower was Prince George Center II, LLC, 99 percent of which was owned by Prince George's Metro Center, Inc. Herschel W. Blumberg is the president and a 75% owner of the Metro Center and his wife Goldene Blumberg is a 25% owner of the Metro Center. The remaining 1 percent was owned by Center Building Corp., which is is 100% owned by Mr. Blumberg.
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