Proving there are very few "safe-harbors" from the commercial real estate tsunami, 1111 Civic Drive in Walnut Creek has slipped into default on its nearly $23 Million mortgage. Published reports in the Contra Costa Times state that "lenders...are moving towards a foreclosure of the $22.8 million loan and seizure of the office building." (to read the full article click HERE)
The building changed hands in 2007, well within the commercial real estate "death period" of 2005 - 2008, and the ownership's plans to turn the space into commercial condos never materialized.
There could yet be a happy ending (for the next ownership group). Foreclosure will "re-set" the building's value, and free up the next ownership group to actively court new tenants with lower rents and the potential of higher TI allowances. And the cycle continues....
The building changed hands in 2007, well within the commercial real estate "death period" of 2005 - 2008, and the ownership's plans to turn the space into commercial condos never materialized.
There could yet be a happy ending (for the next ownership group). Foreclosure will "re-set" the building's value, and free up the next ownership group to actively court new tenants with lower rents and the potential of higher TI allowances. And the cycle continues....
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