This Week's Bay Area Deal Sheet
A cluster of retail buildings in a highly visible part of downtown Oakland is on a loan default watchlist, according to the San Francisco Business Times.
Like downtown properties across the country, Oakland City Square, near the 12th Street BART station in the heart of the East Bay city’s central business district, has dealt with declining occupancy, threatening the owners' ability to pay back a 2018 loan.
Owner STG Group took out a $90M loan to refinance the 250K SF property from an investment firm called Ladder Capital. The loan is slated to mature in 2028. Ladder Capital placed the buildings on the watchlist in 2021 after occupancy slid from 94%. As of as September 2022, the building was 63% occupied, according to the Business Times.
PEOPLE
Lendlease Senior Vice President Swathi Bonda was named to the San Francisco Business Times 40 Under 40 list for her role in overseeing the development of a $1.15B, 47-story tower in the Hayes Valley that marks one of the only skyscrapers to be built in San Francisco after the onset of the pandemic.
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Santa Cruz County Bank hired Michael Davis Luong as vice president and senior relationship manager for the bank’s Silicon Valley region. Luong has an 18-year history in the banking industry with commercial real estate experience.
LEASES
A partnership between the San Francisco Giants and Tishman Speyer called Mission Rock will begin leasing at its new 23-story, 283-unit apartment tower known as The Canyon. The Canyon is located along Third Street next to the Lefty O’Doul Bridge. The leases will begin in June.
CONSTRUCTION
The Cordilleras Health System Replacement Project in San Mateo County, slated to become one of the region’s largest mental health facilities, is on track to be complete in Q4 2024. Skanska, the general contractor, held the topping out ceremony last week, and said the 77K SF campus will be the first net-zero behavioral health facility in the state.
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Blach Construction and Cahill Contractors last week announced the completion of a transit-oriented development in Millbrae. Gateway at Millbrae Station will feature 400 apartments, 100 of which will be below-market, a Marriott hotel, 150K SF of office and 44K SF of ground-floor retail.
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EAH Housing broke ground last week on Mission Paradise, an apartment community for low-income seniors in Hayward.
