"MOUNTAIN VIEW - A big Mountain View tech campus has been seized by its lender in a loan failure that is a reminder of persistent weakness for the Bay Area office market. Citi Real Estate Funding, which had provided the loan that was foreclosed, took ownership of the property through a foreclosure proceeding on Sept. 17. The lender paid $100 million through a foreclosure to take back a 10-building campus known as Terra Bella Tech Park."
"The loan foreclosure for the Mountain View tech park is the latest example of the financial problems that haunt the Bay Area office market. Sky-high vacancies, slumping rents, plunging property values and a growing number of loan defaults remain a challenge for many of the region's office buildings. The problems are severe enough that the delinquencies have resulted in loan foreclosures."
A 10-building Terra Bella Tech Park in Mountain View was seized by lender Citi Real Estate Funding through a foreclosure on Sept. 17. The lender paid $100 million while the unpaid loan debt stood at $123.1 million, and no other bidders emerged, allowing the lender to take the campus. The foreclosed properties had been owned by affiliates of Zappettini Capital Management and sit near the U.S. Highway 101 and North Shoreline Boulevard interchange. Zappettini obtained a $120 million loan in 2019 from Citi Real Estate. The foreclosure underscores widespread Bay Area office problems: high vacancies, slumping rents, falling property values, and rising loan defaults, contrasting with a previously optimistic 2019 assessment about redevelopment plans for the area.
Read at The Mercury News
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