Oakland office building is foreclosed in fresh sign of market maladies

"OAKLAND - An office building that once was the Oakland Masonic Center has been taken back by its lender through a speedy foreclosure process that serves as a reminder of lingering weakness in the Bay Area office market. The building, located at 3901 and 3903 Broadway in Oakland, is now owned by an affiliate of MidCap Financial, which provided the property with a loan in 2022 totaling $35.2 million, Alameda County real estate records show."

"MidCap Financial took ownership of the property through a streamlined process known as a deed in lieu of foreclosure, according to documents filed on Nov. 10 with the Alameda County Recorder's Office. At the time of the foreclosure, the unpaid debt on the site was $32.5 million, the county records show. An alliance of Chicago-based Harrison Street Real Estate and Walnut Creek-based Meridian had bought the former Oakland Masonic Building in 2022, paying $13.5 million for the site."

"The building totals 61,300 square feet, according to marketing materials for the property. The Harrison Street and Meridian alliance had bought the Masonic Center with an eye to converting the property to medical offices, an effort that appears to have borne some fruit before the foreclosure. The building is now known as Broadway Medical Plaza. A Pace Center for Elders' Independence is an occupant in at least part of the building, according to Google Maps and the organization's website."

An Oakland office building formerly known as the Masonic Center was taken back by its lender and is now owned by an affiliate of MidCap Financial. MidCap provided a $35.2 million loan in 2022 and assumed ownership through a deed in lieu of foreclosure; the unpaid debt at the time was $32.5 million. Chicago-based Harrison Street Real Estate and Walnut Creek-based Meridian had purchased the property in 2022 for $13.5 million and pursued conversion to medical offices. The 61,300-square-foot building operates as Broadway Medical Plaza and houses at least one elder care tenant. The case reflects broader financial stress in Bay Area commercial properties.

Read at The Mercury News