Debt tied to three office properties, including one in the Bay Area, is on the market.
The nearly $102 million loan from Wells Fargo is linked to a three-property office portfolio spanning 590,918 square feet, the San Francisco Business Times reported. The properties are owned by affiliates of San Francisco-based Swift Real Estate Partners, and Newmark has the listing.
The offices are Mount Diablo Plaza, a two-building, 340,600-square-foot office property in Walnut Creek; Amberglen, a 157,700-square-foot office in Hillsboro, Oregon; and Bel-Kirk 520, a 92,800-square-foot office in Bellevue, Washington.
Swift bought Mount Diablo Plaza in 2017 for $117 million. It purchased Amberglen that same year and Bel-Kirk 520 two years later. The loan originated for $101.7 million between 2017 and 2019 and was cross-collateralized last February. The Walnut Creek property accounts for 82 percent of the unpaid principal balance on the loan.
The listing opens the door for an investor to acquire the three office properties via a deed in lieu of foreclosure. That maneuver has become common in the region over the past year.
Last October, Lakeside Group took ownership of 180 Grand, an office building in Uptown Oakland, via deed in lieu after paying about $30 million with Rubicon Point Partners to acquire the property’s debt.
In December, Blox Ventures bought the debt secured by an eight-story office building in Emeryville Public Market; it acquired the property outright earlier this year. And in July, the debt tied to Oakland’s Bruener Building hit the market.
Mount Diablo Plaza is 61 percent leased. Power company Calpine Corporation is the anchor tenant at the property. Under Swift’s ownership, the firm made $13 million of capital investments at the offices, including a revamp of the common areas. Tenants have access to an onsite conference center, fitness center and cafeteria.
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