October 1, 2009
RREEF and Snell+Co. have defaulted on Torre Plaza in Cupertino. The 93,000 square foot asset was picked up by Snell and RREEF last August for about $29.2M. The 3-story, class B asset sits on about a 180K SF parcel.
The original loan amount was for $24.5M, and RREEF is about $686K back on the note carried by Prudential Mortgage Capital.
RREEF acquired the building from Symantec and spent some money on sprucing the asset up. Their problem they face here is two-fold, one being that the market collapsed beneath them, and the other is that they moved forward under the overly aggressive assumption that they could lease the building at ~$3.00 NNN rents with minimal TI’s – something which is simply not the case, and never was. Since then they’ve come down on their pricing expectation, but they’ve been behind the market, and now they are in default.
This should be some additional discussion material for RREEF’s investor meeting today.
- Prudential Takes Back Torre Plaza
- RREEF Portfolio Under Distress
- RREEF Portfolio Sale Moving Forward
- Snell & Co. and RREEF Purchase Cupertino Office Building From Symantec
- NAILED: Sunnyvale Town Center