Thursday, July 30, 2009

CRE: Another Half Off Sale

by Bill McBride on 7/30/2009 11:15:00 PM

Update as a response to some emails I've received: the "half off" is a running joke and not meant to be an exact amount - as I noted this deal was bought at auction by the lender for less than half the amount owed. And as we've discussed before, CRE loans sometimes have personal guarantees - so the lender could pursue the previous owner (it's hard to add all the caveats to every post). best to all

Actually more than half off of the loan amount ...

From Silicon Valley / San Jose Business Journal: Lender takes Palo Alto's Bordeaux Centre in auction (ht Ross)

Note: the building is actually in Sunnyvale.

California Bavarian Corp.’s Bordeaux Centre has been sold at auction to its lender Wrightwood Capital for less than $15 million.

Developer Mark Mordell, president of Cal Bavarian, ... said he was told the campus sold for less than half the $34 million debt owed on the never-occupied, 124,000-square-foot project begun by Cal Bavarian in 2007 and finished in 2008
This is another never occupied commercial building - like the ones Jim the Realtor showed us in San Diego last night.