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Watergate Towers Update

October 26, 2009

The Watergate office towers complex in Emeryville has been under receivership and The Registry is reporting Divco is possibly nibbling at the asset. The four-building complex was acquired by Hines. Buildings 1-3 (older towers built in 70-80’s) were acquired by a Hines partnership with guess who….CalPERS! These are expected to be foreclosed on next month.

The fourth tower was also acquired by Hines, but through its REIT and as far as we know not subject to this foreclosure. That property is a 100% leased. The whole project is about 1.2M square feet and sits on about 22 acres of dirt right off Highway 80.

My favorite quote in the story is this:

“The bank has been getting lots of calls from potential buyers for the asset.  The lender is now processing these calls. The bank would like to get paid the full amount that it is owed,” Michael Covarrubias, chief executive officer of San Francisco’s TMG Partners, said.

Of course they would. Also according to the article,

the property is 85 percent occupied, according to Real Capital Analytics. San Francisco-based Pacific National, which has $2.12 billion in assets, has not experienced large real-estate related losses in the San Francisco Bay Area.

Has not does not mean that it won’t as Pacific National was involved in some rather vacant development projects.

[via The Registry]

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Categories: Commercial Finance and Lending | Commercial Real Estate Investing
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