The Presidential Tower in Arlington, Va., is feeling the pinch after the servicer handling its loan felt the sting of an appraisal reduction in the $39-milion range, Trepp Analytics said.
The building is secured by an $80 million loan that represents 2.2% of the JPMCC 2007-CB18 CMBS transaction.
The steep appraisal reduction is attributed to the fact that the U.S. General Services Administration vacated the building, stressing the loan which eventually ended up in foreclosure during the month of April. The tower in 2007 was appraised at $102 million and was eventually appraised down to $45 million in March.
