Orion Extends $355M CMBS Debt

February 20, 2026

A 2.1 million-square-foot office portfolio backs this loan.

Orion Properties has amended its $355 million CMBS loan issued and sold by Wells Fargo in 2022, due to mature in 2027. The REIT obtained a two-year extension, with another two extensions available, bringing the new maturity date to 2030.

The debt encumbers 19 suburban office assets spread across 11 states. Markets include Phoenix, Philadelphia, Nashville, Tenn., Memphis, Tenn., Denver, Columbus, Ohio, and Baltimore, as well as Atlanta.

The properties encompass 2.1 million square feet, as reported by Commercial Observer. The largest one is a three-building, 481,854-square-foot office campus in Pennington, N.J. Orion paid $77.2 million for the asset in 2021, a significantly smaller price than the $135 million it traded for in 2012, Yardi Matrix shows.

Orion will retain the same interest rate on the debt. However, the lender will sweep all monthly excess cash flows from the 19 properties after payment of interest and operating expenses. Half of this capital will be used to prepay the outstanding balance during the initial extension period, while the other half will fund an all-purpose reserve.

Wells Fargo established this reserve to include tenant improvements and leasing commissions, which totaled $37.7 million at the loan modification date. Orion contributed an additional $7.7 million into the reserve, sourced from an $350 million revolving facility that was also refinanced and replaced with a $215 million facility. The company forged this new credit agreement with Wells Fargo as well, together with some of the largest commercial lenders including JPMorgan Chase, TD Bank and MidFirst Bank.

CMBS delinquencies on the rise

The overall CMBS delinquency rate ticked up 73 basis points year-over-year to 7.3 in December, according to a Trepp report. Office debt was above the national average at 11.3 percent, up 30 basis points over the year.

While delinquencies continue to rise, new deals also close. Earlier this month, Brookfield Properties secured an $800 million CMBS loan for the refinancing of a 2.4 million-square-foot office building at 225 Liberty St. in Manhattan. The new mortgage is $100 million smaller than the previous note.