Anthem's Wallingford space set for foreclosure

BY Gregory Seay

PHOTO| Gale Development
PHOTO| Gale Development
The Campus at Greenhill in Wallingford.
The two-story Wallingford office building housing insurer Anthem Health and engineering firm Burns & McDonnell is slated for foreclosure, a New York realty-debt tracker says.

The 287,957-square-foot Campus at Greenhill on 104 acres at 100 Leigus Road secures a $24.5 million mortgage that has been in receivership since last September, according to debt-tracker Trepp LLC.

Trepp, citing the special servicer's March remittance data, said the loan is now designated for foreclosure. The loan makes up a tiny sliver of a collateralized mortgage backed security, known as COMM 2014-UBS5, Trepp said.

Swiss banking giant UBS was Greenhill's lender. As of 2014, Greenhill was valued at $34.4 million, Trepp said.

Greenhill's loan is paid through February, but Trepp said the special-servicer's March comments indicate that a breach of contract suit was filed recently over a $1.3 million fee Anthem purportedly paid in 2015 to terminate its lease. Anthem's lease expires in 2022, with Burns & McDonnell's lease set to expire in 2019.

Anthem is Greenhill's lead tenant, occupying some three quarters of its office space, with Burns & McDonnell a tenant in about 12 percent of the square footage, according to Trepp data.

Trepp said the loan's fine print indicates that Anthem had the right to end occupancy of about 67,000 square feet, or roughly a third of its Greenhill footprint. Burns & McDonnell, too, has a termination option, Trepp said.